Google Pay is violating the Payment and Settlement System Act.

Reserve Bank of India clarified that Google Pay is not violating the Act as it is a third party add provider and does not operate any payment systems.

Reserve Bank of India clarified that Google Pay is not violating the Act as it is a third party add provider and does not operate any payment systems.A Public Interest Lawsuit, filed by Abhijit Mishra, alleged that Google's mobile payment app, Google Pay was facilitating financial transactions without the requisite authorization from RBI and violated the Payments and Settlements Act.

In reply to the PIL at the Delhi High Court, the RBI said that Google Pay was a third-party app and because it does not operate any payment systems, its operations are not in violation of any Act. The RBI also clarified that Google Pay does not come under the National Payment System of India as it is not an authorized payment system operator. The bench further said that the matter requires detailed hearing as it affects other third-party apps and listed it on July 22.