GPay stands for the Google Pay, earlier known as Tej app. By today (26th June, 2020) GPayBanned By RBI started trending on Twitter India. Well, this trend doesn’t make any sense.
Why GPayBanned By RBI trends on Twitter ?
People are trending this as they are not aware of the actual news and became the victim of fake news. Few users spread the news “Google Pay is banned by RBI”, which is completely an absurd. The actual news is mentioned below :
A PIL was filed by financial economist who has alleged Google Pay of facilitating financial transactions without the requisite authorisation from RBI. He also claimed that app was acting as a payments system provider in violation of the Payments and Settlements Act as it has no valid authorisation from the central bank of the country to carry out such functions.
In response, Reserve Bank of India (RBI) has told the Delhi High 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.
“Google Pay doesn’t operate payment system” means Google doesn’t operate any bank with which Google Pay is connected. Apps like PhonePe, MobiQuick have no banks, they are linked with some other banks, recognized by RBI to maintain their transactions.
Paytm is one of the payment app that has established their bank and got the recognition from RBI.
Few months back, Phone Pe was in trouble as official partner of PhonePe was YesBank and YesBank was stuck in financial issue. Later on, issue got resolved and PhonePe started working properly. Now, ICICI Bank is the official UPI partner of PhonePe after YesBank.
So, it’s not a great deal if GooglePay has no payment system. But there is a chance of getting issues while financial crisis.