NEW DELHI: The Delhi High Court on Wednesday issued a notice to digital payments giant PayPal Payments, based on a plea seeking to stop the allegedly illegal and unauthorised operations of the US-based firm in India.
A bench comprising Chief Justice D N Patel and Justice C Hari Shankar issued notice to the Reserve Bank of India (RBI), Enforcement Directorate and PayPal, and sought their stand on the Public Interest Litigation before the next date of hearing on September 18.
The plea was filed by one Abhijit Mishra, a financial economist, who said PayPal’s operations as a payment system in India is against Section 4 (1) of the Payment and Settlement System Act, 2007, which says “no person other than the Reserve Bank shall commence or operate a payment system except under and in accordance with an authorisation issued by the Reserve Bank under the provisions of the Act.”
It also raised issues on the protection of privacy, and said that PayPal has unmonitored and unauthorised access to the personal information such as Aadhaar and PAN of the citizens, threatening Article 21 of the Constitution of India.
This newspaper tried contacting Paypal for its comment on the issue, but no response was provided till the time we went to press.