Supreme Court Seeks Responses from Tech Giants on Data Regulation on UPI Platforms

Strategic Insights -

The Supreme Court of India has issued formal notices to Google, Facebook, WhatsApp, and Amazon on a plea filed by Rajya Sabha MP Binoy Viswam seeking regulation to ensure that data collected on UPI platforms is not exploited or used for purposes other than processing payments. The court has sought responses from the tech giants after Viswam, a Communist Party of India (CPI) leader, had alleged that the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) are compromising the interest of Indian users by allowing non-compliant foreign entities to operate payment services in the country. The plea contends that granting unrestricted access to financial data to tech giants like Google and Facebook would put Indian users' sensitive financial data at huge risks, given their history of abusing dominance and compromising data.

Key Takeaways:

  • The Supreme Court has issued formal notices to Google, Facebook, WhatsApp, and Amazon on a plea filed by Rajya Sabha MP Binoy Viswam seeking regulation to ensure data collected on UPI platforms is not exploited or used for purposes other than processing payments.
  • The plea alleges that RBI and NPCI are compromising the interest of Indian users by allowing non-compliant foreign entities to operate payment services in the country.
  • The petition contends that granting unrestricted access to financial data to tech giants like Google and Facebook would put Indian users' sensitive financial data at huge risks, given their history of abusing dominance and compromising data.
  • The RBI has appraised the court that responsibility to ensure compliance with rules and regulations on UPI platforms lies with the NPCI and not the RBI.
  • The court has posted the matter after four weeks asking all parties to file their responses.

Statistics:

  • The plea was filed by Rajya Sabha MP Binoy Viswam on behalf of the Communist Party of India (CPI), a major opposition party in India.
  • The United Payments Interface (UPI) platform is regulated and supervised by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI).
  • The Payment and Settlement Systems Act, 2007 (PSS Act) governs the regulation of payment services in India.
  • The RBI has not given any sanction to Third Party App Providers under the Payment and Settlement Systems Act, 2007 (PSS Act).

Sources:

  • United News of India (UNI)
  • Publication Title: HT Digital Content Services
  • Authorization: With permission from United News of India.