Search giant Google has partnered with bullion refiner MMTC-PAMP India. As a result of this partnership, Google Pay users can buy and sell gold through the app. Other UPI payments app such as Paytm, Mobikwik and PhonePe offer a similar service. Google Pay users can buy 99.99 per cent 24-karat gold, the company said.
"Gold is core to Indian culture and tradition, making India the world's second largest consumer of gold. Indians buy gold to mark auspicious occasions each year be it Akshaya Tritiya, Dhanteras or Diwali," Google Pay India Director Product Management Ambarish Kenghe said.
Google Pay users can purchase gold for any value and that will be stored on behalf of the user, by MMTC-PAMP, in secure vaults. Google Pay users can purchase and sell this gold any time at the latest price. Prices automatically refresh every few minutes and show up clearly on Google Pay app.
The announcement comes a day after the Delhi High Court asked the Reserve Bank of India (RBI) as to how was Google Pay was facilitating financial transactions without its authorisation. The court also issued a notice to RBI and Google India seeking their response on the issue.
Google spokesperson said Google Pay complies with all applicable legal requirements.
"Google Pay operates as a technology service provider to its partner banks, to allow for payments through the UPI (Unified Payments Interface) infrastructure, and is not part of payment processing or settlement. There is no requirement for licensing of these services under the prevailing statutory and regulatory provisions," the spokesperson had said.
Google spokesperson had stated Google is mindful to prioritise data security and that the company is committed to complying with the laws.
"In order to support our partner banks, our efforts in complying with the government's data localisation norms are underway, and given the scale and complexity, we are being mindful to prioritise data security and uninterrupted services to our users as we make this transition. The central bank is apprised of the progress and we remain committed to complying with the laws of the land," Google spokesperson had said.
(With PTI inputs)