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Delhi HC issues notice, RBI over plea on alleged violation by Google Pay

The Delhi HC issues notice to the center, RBI and others on a plea seeking action against Google Pay for allegedly violating RBI guidelines on data protection. The division bench of Chief Justice DN Patel and Justice Prateek has issued notices to Google India, Union Bank of India and the RBI. Mr. Abhishek Sharma filed the petition seeking a direction to be issued to RBI to ensure immediate compliance with norms on data localization, storage and sharing of data. The petitioner has argued that Google Pay, which is the third party app, has violated RBI Procedural guidelines Version 1.7 by storing the sensitive data of the users.

As per the said guidelines, only the PSP bank systems are allowed to store sensitive data and not a third party app. The petitioner states, ‘Google pay’ being a TPA, despite being provided a strong mandate against storing Personal Sensitive data, is storing the same in utter disregard to the binding UPI procedural Guidelines. It also shares UPI data with its parent bodies, subsidiaries and other sister concerns in the name of Software updates, which is in clear violation of the binding regulations.’ In addition to this, the petitioner also seeks punitive action against Google Pay for allegedly risking customer data by not complying with the guidelines

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