RBI Revokes Authorisation Certificate of Chennai-Based GI Technology

RBI Revokes Authorisation Certificate of Chennai-Based GI Technology: Due to issues with the company’s governance, the Reserve Bank has revoked the certificate of authorization of Chennai-based GI Technology Private Limited. The company is in business of issuance and operation of prepaid payment instruments.

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The Central Bank’s Statement:

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. GI Technology cannot transact the business of issuing and operating prepaid payment instruments following the cancellation of the CoA, 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.

A Persistence Phenomenon From The Past Few Years:

The Certificate of Authorization (CoA) of two Payment System Operators (PSOs), Muthoot Vehicle & Asset Finance and Eko India Financial Services, has been revoked, the Reserve Bank of India (RBI) previously informed. Because of non-compliance with regulatory requirements, the authorization was revoked.

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.