UPI transactions through Google Pay are legally protected: NPCI

The National Payments Corporation of India (NPCI) dismissed social media claims that transactions made through Google Pay are not legally protected.

"We would like to clarify that Google Pay is classified as Third Party App Provider (TPAP) that also provides UPI payment services like many others, working through banking partners and operating under the UPI framework of NPCI," the NPCI said in a statement on June 25.

All authorised TPAPs are listed on the NPCI website, and the transactions are protected by law, the regulatory authority added.

Unlike Paytm, for instance, Google Pay does not provide mobile wallet services. Its users make payments through the Unified Payments Interface (UPI) service.

Comments attributed to the Reserve Bank of India (RBI) appear to have caused some confusion on social media platforms.

"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 on June 24, as quoted by PTI.

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 DN Patel and Justice Prateek Jalan.

RBI told the court that since Google Pay does not operate any payment system, it does not find a place in the list of authorised payment system operators published by the NPCI.

(With inputs from PTI)