GPay, PhonePe, PayTm: International players' 'banking activity' sans bank license?

By Thomas Franco*
Today Google Pay (G-Pay) owned by Google, PhonePe owned by Walmart, PayTm owned by Soft Bank and other payment apps have taken over money transfers. As per the report of the National Payment Corporation of India, in September 2021, there were 3.6 billion (3654.5 million) Unified Payments Interface (UPI) transactions worth Rs 6,54,531 crore.
This was made possible by National Payments Corporation of India (NPCI) which gives access to the accounts of all banks using the UPI platform as the accounts are linked with the customer’s Aadhaar card and phone number.
These linkages basically benefit the international players, as it allows them to do banking activities without a bank licence! GPay doesn’t charge anything for the transactions. Why? Because they are after the data more than anything else. At a later stage, they will start charging user charges from the remitter as well as the receiver. Apple Pay has already done that in the US.
There are more than 58 apps using the UPI platform. The banks have lost remittance business because of these apps. SBI, the largest bank, has only 1036.45 million remittances and its app has just 3.77 million transactions. Due to the service charges, customers don’t prefer the banks anymore. This is one way of killing banks to help Fintechs.
But this is just a tip of the iceberg. There is no way to get your money back if you remit to the wrong account using these apps. The transaction can’t be traced, whereas, in bank remittance, there is a way to trace and get your money back.

Moreover, in the apps, the owner of the app gets access to your data, thus invading your privacy. The companies use your financial behaviour to study what you buy, whom you pay and use it for advertising products and influence your purchase decisions.

Apart from the intrusion of one’s privacy, does it not create security issues? Let’s look at this aspect. Google has the map of the entire country, including the locations of defence installations. You must have seen in movies and TV serials, how the CIA and FBI get accurate locations through satellites and even plan operations using drones. It could be worse in real life.

Any individual can be easily put under surveillance using his Aadhar card, phone and GPS. People don’t realise this. The government knows this but doesn’t care. The NPCI is planning for some controls after 2021. Why haven’t they done it before allowing the apps to access data through UPI?
Google claims it’s planning to provide privacy data protection. The question is, to what extent? What is the RBI is doing? What S Gurumurthy of the Swadeshi Jagran March is doing at RBI about these videshi companies? Google is an investor in Reliance Jio. Reliance also has a payment bank which is hardly doing anything compared to Airtel payment bank and Paytm. Probably they are waiting.
The youth of the country are being taken for a ride. Fintech companies will use this data and give them loans at huge interest and lead them to a debt trap. Banks will keep losing business including loans as these apps will start lending soon. But, who cares?
---
*Thomas Franco is the former General Secretary of All India Bank Officers’ Confederation (AIBOC). Source: Centre for Financial Accountability

Comments

The silencing of conscience: Ideological attacks on India’s judiciary and free thought

By Sunil Kumar* “Volunteers will pick up sticks to remove every obstacle that comes in the way of Sanatan and saints’ work.” — RSS Chief Mohan Bhagwat (November 6, 2024, Chitrakoot) Eleven months later, on October 6, 2025, a man who threw a shoe inside the Supreme Court shouted, “India will not tolerate insults to Sanatan.” This incident was not an isolated act but a continuation of a pattern seen over the past decade—attacks on intellectuals, writers, activists, and journalists, sometimes in the name of institutions, sometimes by individual actors or organizations.

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat* Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu. He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

World Bank arm accused of hiding crucial report on Gujarat’s Tata Mundra power project

By A Representative The Centre for Financial Accountability (CFA) has accused the Compliance Advisor Ombudsman (CAO), the accountability arm of the International Finance Corporation (IFC), of concealing crucial evidence related to the Tata Mundra coal power project in Gujarat during the period when the case was being heard in U.S. courts. In a press statement released on October 10, 2025, CFA said that the CAO’s final monitoring report, which was completed in 2019 but released only in September 2025, revealed that IFC had failed to take remedial action for years, even as environmental and livelihood harms to local communities worsened.

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

When communities lead: The story of Puttenahalli lake restoration in Bengaluru

By Alejandra Amor, Mansee Bal Bhargava The tropical Indian ecology pushed communities to develop the art and science of rainwater collection since antiquity. Traditionally, harvesting rainwater through ponds, lakes, and wetlands formed an integral part of a holistic water system that included rivers, canals, wells, aquifers, and springs. These decentralized systems sustained irrigation, livestock, and domestic needs in rural areas, supported by generations of community water management practices embedded in both utilitarian and ritualistic values.

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Search This Blog