Trouble for Google: GPay storing data illegally?

The Delhi High Court, on September 15, sought response from the Unique Identification Authority of India (UIDAI) and Reserve Bank of India (RBI) on a PIL alleging unauthorized access, use and storage of users’ Aadhaar and banking information by Google Pay.

A bench has issued notice on the petition and also sought the stand of Google India Digital Services Private Limited. The Delhi HC has set November 8 as the next date of hearing.

The petition, filed by a financial economist, says that the “Terms and Conditions of Google Pay explicitly states that the company will be storing the payment instruction details of the parties including Bank Accounts and Aadhaar details even though no permission to undertake such a practice has been issued by the concerned authorities.”

“Google Pay is collecting the Aadhaar and banking transaction details of the citizens of India which is a sheer violation of the above-mentioned act along with Article 21 of the Constitution of India,” said the plea filed through lawyer Payal Bahl.

Being a private company, Google Pay is not empowered to collect, use and store Aadhaar and Banking information of the citizens, it added.

Google India Digital Services last year told the court that Google Pay did not require RBI authorisation as it is not a payment system operator (PSO) but a third party application provider. RBI had earlier told the court that Google Pay is a third-party app provider (TPAP) 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 said.