The Reserve Bank of India (RBI) on Tuesday said that it had revoked the certificate of authorisation (CoA) of Vodafone's mobile phone banking service, M-Pesa Limited, owing to voluntary surrender of authorisation.
"The Reserve Bank of India, in exercise of the powers conferred on it under the Payment and Settlement Systems Act, 2007, has cancelled the Certificate of Authorisation (CoA) of the below mentioned Payment System Operator (PSO) on account of voluntary surrender of authorisation," said the central bank in a press release.
Subsequent to the cancellation of the CoA, M-Pesa cannot transact the business of issuance and operation of prepaid payment instruments, the RBI said in its statement.
However, customers or merchants having a valid claim on the company as a payment system operator can approach it for settlement of claims within three years from the date of cancellation i.e. by September 30, 2022.
Vodafone M-Pesa had voluntarily surrendered the authorisation, it clarified.
Last year, Vodafone Idea had decided to close M-Pesa vertical, following the closure of Aditya Birla Idea Payments Bank Ltd (ABIPBL), with which it was being merged.
Vodafone M-Pesa was one of the 11 firms that were given payments bank licence by the RBI in 2015.