RBI cancels licence of Tech Mahindra for issuing pre-paid cards

The Reserve Bank today canceled the license of Tech Mahindra Limited to issue pre-paid cards following the voluntary surrender of authorization by the Noida-based company.

The certificate of authorization (COA) was issued in November 2013, the Reserve Bank said in a statement.

"The RBI, in the exercise of the powers conferred on it under Payment and Settlement Systems Act, 2007, has canceled the COA of (Tech Mahindra Limited, Noida) Payment System Operator (PSO) on account of the voluntary surrender of authorization by the company," it said.

Following the cancellation of the COA, the company cannot transact the business of pre-paid card issuance.

However, customers or merchants having a valid claim, if any, on Tech Mahindra, Noida as a PSO, can approach the company for settlement of their respective claims within two years from the date of this cancellation (up to August 27, 2020).

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