National Payments Corporation of India (NPCI) rejected claims being made on social media that Google Pay has been banned by the RBI. It has issued a statement clarifying that Google Pay is authorised in India and it is as legal as any other recognised UPI apps in the country.
“We have come across some quotes on social media which suggest that transferring money through Google Pay is not protected by the law, since the app is unauthorised. RBI has authorised NPCI as a Payment System Operator (PSO) of UPI and NPCI in its capacity as PSO authorises all UPI participants. 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. All authorised TPAPs are listed on the NPCI Website,” said NPCI in its statement.
Commenting on whether apps like Google Pay are safe or not, NPCI added in its statement, “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 customers already have full access to the 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 fully safe and secure, and we appeal to the citizens not to fall prey to such malicious news. We also request UPI customers not to share their OTP (one time password) and UPI Pin with anybody”.
Meanwhile, mobile payments initiated by apps, comprising account-to-account transfers and payments made from stored-value accounts, rose 163%to $287 billion in 2019, a report by S&P Global Market Intelligence said on Tuesday. The ‘India Mobile Payments Market Report’ noted that point-of-sale transactions completed using debit and credit cards, including online and in apps, rose 24% to $204 billion.