RBI cancels authorisation certificates of two payment system operators

Both the Payment System Operators PSOs had authorisation for issuance and operation of prepaid payment instruments.Following the cancellation of the Certificate of Authorisation CoA, these companies cannot transact the business of issuance and operation of prepaid payment instruments, RBI said.

Reserve Bank of India (RBI) has cancelled the authorisation certificates of Muthoot Vehicle and Asset Finance Ltd and Eko India Financial Services Private Ltd for non-compliance with regulatory requirements. Both the Payment System Operators (PSOs) had authorisation for issuance and operation of prepaid payment instruments.

''Following the cancellation of the Certificate of Authorisation (CoA), these companies cannot transact the business of issuance and operation of prepaid payment instruments,'' RBI said. However, customers or merchants having a valid claim, if any, on these companies as PSOs, can approach them for settlement of their claims within three years from the date of cancellation.

The CoA was cancelled on December 31, 2021, RBI said.