The NPCI is an umbrella organisation which operates digital payments in India, also developed the Unified Payments Interface (UPI) which can be used for payments by platforms such as Google Pay, PhonePe, and Paytm. On social networking, there is a trending hashtag”GPayBanned By RBI”, followed by news that the Reserve Bank stated that Google Pay was not a payments system operator. But soon after this started to circulate, the NPCI has issued a statement verifying that Google Pay is authorised and secure.
In its clarification, the NPCI clearly writes that the RBI authorised it as a Payments System Operator (PSO). Companies like Google Pay are program providers to the PSO, and NPCI verified that trades on Google Pay are fully protected under the law. It says:”RBI has authorised NPCI for a Payment System Operator (PSO) of UPI and NPCI in its capacity as PSO authorises all of UPI participants. We’d like to clarify that Google Pay is categorized as Third Party App Provider (TPAP) that additionally provides UPI payment services such as many others, operating through banking spouses and operating under the UPI framework of NPCI. All transactions made using some of the authorized TPAPs are fully protected by the redressal processes.”
Although the clarification was issued by the NPCI on Thursday, the hashtag together with the news website about the RBI continues to circulate and has become a trending topic on Twitter.
The RBI had been making a statement in the Delhi High Court in response to a PIL by monetary economist Abhijit Mishra that has alleged that Google Pay enabled financial transactions with no authorisation in the RBI.
In response, the RBI allegedly said the Google Pay doesn’t operate any payment systems, and that is the reason why its name isn’t in the list of authorised operators. It also advised the Court for this reason, it is not in violation of the law — however, the trending hashtag ignores this line in the accounts that is frequently included with it — and so even before the NPCI issued its clarification, this hashtag was deceptive.
The NPCI reasoned its clarification by stating:”All transactions made using any of the authorized TPAPs are fully protected by the redressal processes laid out by applicable guidelines of NPCI/RBI and clients already have full access to exactly the exact same. Further, we would also like to clarify that all authorised TPAP’s are already bound by full compliance to all the regulations and applicable laws in India. UPI ecosystem is completely safe and secure, and we appeal to the citizens to not fall prey to such malicious information. In addition, we request UPI clients not to share their OTP (one time password) and UPI Deluxe with anyone.”