RBI cancels Vodafone M-Pesa CoA; customers can get claims by Sept 2022
The Reserve Bank of India (RBI) on Tuesday revoked the Certificate of Authorisation (CoA) of Vodafone’s mobile phone banking service M-Pesa Limited on account of voluntary surrender of authorization.
Vodafone’s M-Pesa customers and merchants having a valid claim on the company as a Payment System Operator (PSO) can approach it for settlement of claims by September 30, 2022. The company recently requested the voluntary surrender of authorisation.
The RBI through a press release said that it had cancelled the CoA of the PSO under the Payment and Settlement Systems Act-2007. After the cancellation of CoA, M-Pesa cannot transact the business of issuance and operation of prepaid payment instruments. Secondly, the company will not be able to do work related to prepaid payment as the functioning of the payment bank has stopped. Also, the M-Pesa customers will now have to withdraw money from their respective payment banks.
It may be noted that the Reserve Bank of India started the payment bank system in 2015 intending to provide door-to-door banking services in the country. Out of 41 that had applied, about 11 companies were issued licenses.
Apart from this, in 2019, the Aditya Birla Idea Payment Bank Limited (ABIPBL) also requested liquidation from the RBI.