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RBI revokes Vodafone's phone banking certificate; customers can settle claims by 2022

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

twitter-logo BusinessToday.In        Last Updated: January 21, 2020  | 16:07 IST
RBI cancels Vodafone M-Pesa certificate; customers can settle claims by 2022
Vodafone M-Pesa was one of the 11 firms that were given payments bank licence by the RBI in 2015. (Photo/wikimedia)

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.

Also Read: RBI penalises Vodafone m-pesa, PhonePe and three others over regulatory violations

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.

Also Read:Vodafone Idea signs multi-million dollar IT deal with IBM

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.

Also Read:RBI makes public minutes of its board meeting for the first time

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