PPI Licence of Vodafone M-Pesa revoked by RBI
The Reserve Bank of India (RBI) recently canceled the Certificate of Authorisation (CoA) of Vodafone M-Pesa after it voluntarily surrendered its authorization. RBI authorizes the Payment System Operator to set up and operate in India under the Payment and Settlement Systems Act, 2007. The absence of long term business led to continuing losses was the main reason for shutting down of operation. Vodafone M-Pesa was launched in 2013, was given license for payments bank in 2015 by RBI and as per the last reported update on 5th January 2017 from the company, it had 8.4 million users.
After the closure of Aditya Birla Idea Payments Bank Ltd (ABIPBL), with which Vodafone M-Pesa was merged, the company decided to apply for voluntary surrender of authorization. After the cancellation, the company cannot transact the business of issuance and operation of Prepaid Payment Instruments but the customers or merchants with a valid claim on the company as a PSO can approach it till September 30, 2022.
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Month: Current Affairs - January, 2020