RBI Revokes Authorisation Certificate of Chennai-Based GI Technology

The Reserve Bank has revoked certificate of authorisation of Chennai-based GI Technology Private Limited over governance concerns in the company. The company is in business of issuance and operation of prepaid payment instruments.

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What The Central Bank Said:

Governance concerns and non-compliance with regulatory requirements” are the reasons for revocation of Certificate of Authorisation (CoA), the central bank said in a statement. Following the revocation of the CoA, GI Technology cannot transact the business of issuance and operation of prepaid payment instruments, it said. Following the revocation of the CoA, GI Technology cannot transact the business of issuance and operation of prepaid payment instruments, it said. However, customers or merchants having a valid claim, if any, on the company as PSO, can approach the company for settlement of their claims, the Reserve Bank added.

Law That Make This Happen:

The Reserve Bank of India, in the exercise of the powers conferred on it under Section 8 of the Payment and Settlement Systems Act, 2007, has revoked the Certificate of Authorisation (CoA) of the Chennai-based GI Technology Private Limited over governance concerns in the company.

A Persistence Phenomenon From The Past Few Years:

The Reserve Bank of India (RBI) previously informed that it has cancelled the Certificate of Authorisation (CoA) of two Payment System Operators (PSOs): Muthoot Vehicle & Asset Finance, and Eko India Financial Services. The authorisation was cancelled for non-compliance with regulatory requirements.

Following the cancellation of the CoA, these companies cannot transact the business of issuance and operation of prepaid payment instruments. “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 RBI said.

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