All transactions fully protected under RBI, NPCI guidelines: Google Pay

"Some quotes on social media, wrongly attributed to the RBI, claim that issues arising while transferring money through Google Pay are not protected by the law, since the app is unauthorised. This is incorrect and can be verified on NPCI's website," a Google spokesperson said.

New Delhi: Google Pay on Wednesday said all transactions made through its platform are fully protected by redressal processes laid out in the guidelines issued by the Reserve Bank of India and the National Payments Corporation of India.

The statement comes against the backdrop of social media buzz that issues that might arise while transferring money through Google Pay cannot be redressed under law as the app is unauthorised.

"Some quotes on social media, wrongly attributed to the RBI, claim that issues arising while transferring money through Google Pay are not protected by the law, since the app is unauthorised. This is incorrect and can be verified on NPCI's website," a Google spokesperson said.

According to the spokesperson, RBI has not said that the Google Pay app is unauthorised or not legally compliant in its court hearing or in its written response to the Delhi High Court.

Earlier this month, RBI told the Delhi High Court that Google Pay is a third party app provider and does not operate any payment systems.

Therefore, its operations are not in violation of the Payment and Settlement System Act of 2007, RBI had told a bench of Chief Justice D N Patel and Justice Prateek Jalan.

"Google Pay operates completely within the law. Google Pay works as a technology service provider to partner banks, to allow payments via UPI (Unified Payments Interface). UPI apps in the country are categorised as 'third party apps', and are not required to be 'payment systems operators'," the Google spokesperson said.

The spokesperson noted that all transactions made via Google Pay are fully protected by redressal processes laid out by applicable guidelines.

"All transactions made via Google Pay are fully protected by redressal processes laid out by applicable guidelines of the RBI/ NPCI, and users can reach out for any help 24/7, through Google Pay customer care," the spokesperson said.

Concerns over transactions on third party apps like GPay can be redressed: NPCI

The National Payments Corporation of India (NPCI) said any issue with transactions on third party app providers like Google Pay can be redressed under the guidelines laid out by it and the Reserve Bank.

The NPCI said that "malicious news" is floating on social media which suggests that transferring money through Google Pay is not protected by the law, since the app is unauthorised.

Stating that Google Pay is a third party app provider (TPAP), the NPCI said, "All transactions made using any of the authorised TPAP are fully protected by the redressal processes laid out by applicable guidelines of NPCI/RBI and customers already have full access to the same."

Authorised TPAP's are already bound by full compliance to all the regulations and applicable laws in India, it added.

Google Pay is classified as a TPAP that also provides UPI payment services like many others, working through banking partners and operating under the UPI framework, it said, adding that all the authorised TPAPs are listed on the NPCI website.

Earlier this month, RBI told the Delhi High Court that Google Pay is a third party app provider and does not operate any payment systems.

(PTI Report)