This story was first published on Benzinga India portal.
Delhi High Court recently granted popular UPI payment platform – alphabet inc (NASDAQ:GOOG) (NASDAQ:GOOG) google pay Green Light, has rejected two petitions calling for it to halt its operations in India over alleged regulatory and privacy breaches.
What happened? Diving into the details, a bench headed by Chief Justice Satish Chandra Sharma and Justice Subramaniam Prasad clarified that Google Pay operates as a third-party app provider. This means that it does not require direct approval. Reserve Bank of India (RBI) Under the Payment and Settlement Systems Act (PSS Act). Essentially, Google Pay is not the main player in the transaction game, but a facilitator.
The Court further emphasized that the real operator behind the UPI transaction system in India is National Payments Corporation of India (NPCI), Transactions done through Google Pay are only between two parties, either individuals or individuals associated with a business.
Data Privacy Concerns: Addressing data privacy concerns, the Court highlighted clear storage guidelines. While the app provider may store some data in encrypted form, the payment service provider’s bank systems keep more sensitive payment data strictly under the multi-modal API approach that Google Pay has chosen.
The decision came in response to lawyer Abhijeet Mishra’s claim that Google Pay lacked necessary permissions to operate in India, potentially in violation of the Aadhaar Act, 2016 and the PSS Act. The legal teams of both Google Pay and RBI were present during the hearing.
Read Next: Trump hits out at India’s high taxes, highlights Harley-Davidson’s struggles
Photo by XanderSt on Shutterstock
Don’t miss the real-time alerts on your stocks – Join Benzinga Pro for Free! Try the tool that will help you invest better, faster and smarter.
This article Google Pay wins in Indian capital’s High Court, clears regulatory hurdles was originally published on Benzinga.com.
,
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: finance.yahoo.com
