Is Google Pay illegal? RBI issues clarification

Google Pay

After a week of conflicting reports, the Reserve Bank of India (RBI) has finally issued a statement as
per which the electronic payment and settlement systems infrastructure agency NPCI has noted that
the RBI has authorized Google Pay as a payment system operator (PSO) of the UPI platform and

It needs to be mentioned here that Google’s digital wallet platform and online payment system has
been classified as a Third Party App Provider (TPAP) which also extends service to UPI payment like
many other providers. Also, it works through banking partners and operates under the UPI
framework of NPCI.

“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 unauthorized. RBI has authorized NPCI as a
Payment System Operator (PSO) of UPI and NPCI in its capacity as PSO authorizes all UPI
participants. We would like to clarify that Google Pay is classified as a 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," NPCI said in a statement.

This clarification had to be made as social media was abuzz with reports which said that issues could
prop up when transferring money through Google Pay, but it could not be addressed as the app is
unauthorized as per the law.

" 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 authorized TPAP’s are already bound by full
compliance with 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," NPCI added in the

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