RBI cancels licence of Tech Mahindra for issuing pre-paid cards

The Reserve Bank today cancelled the licence of Tech Mahindra Limited to issue pre-paid cards following the voluntary surrender of authorisation by the Noida-based company.

The certificate of authorisation (COA) was issued in November 2013, the Reserve Bank said in a statement.

"The RBI, in exercise of the powers conferred on it under Payment and Settlement Systems Act, 2007, has cancelled the COA of (Tech Mahindra Limited, Noida) Payment System Operator (PSO) on account of voluntary surrender of authorisation by the company," it said.

Following the cancellation of the COA, the company cannot transact the business of pre-paid card issuance.

However, customers or merchants having a valid claim, if any, on Tech Mahindra, Noida as a PSO, can approach the company for settlement of their respective claims within two years from the date of this cancellation (upto August 27, 2020).