RBI revokes authorisation certificate of Chennai-based GI Technology

RBI revokes authorization certificate of Chennai-based GI Technology: The Reserve Bank announced that it had revoked GI Technology Private Limited’s certificate of authorization due to problems with the company’s governance. The business of the company is the issuance and management of prepaid payment instruments. Earlier, this year, the Reserve Bank of India (RBI) also cancelled the authorisation certificates of Muthoot Vehicle and Asset Finance Ltd and Eko India Financial Services Private Ltd due to non-compliance with regulatory requirements

What are the reasons behind this revocation?

The central bank stated in a statement that the revocation of the Certificate of Authorization (CoA) was due to governance issues and non-compliance with regulatory requirements.

Under which Act RBI exercised this power of revocation?

In exercising its powers under Section 8 of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India revoked the Certificate of Authorisation (CoA) of Chennai-based GI Technology Private Limited due to governance concerns.

What will happen after the revocation of the CoA?

Following the revocation of the CoA, GI Technology will no longer be able to conduct business in the issuance and operation of prepaid payment instruments. Customers or merchants, however, may approach the company for the settlement of their claims if they have a legitimate claim against it as a PSO.

What is Certificate of Authorization (CoA)?

Certificate of Authorization (CoA) is a digital document describing an issuer’s permission to use a service or resource that the issuer controls or has access to. It is typically signed using a public key algorithm. Permission can also be delegated in some cases. Certificates of Authorization are issued by the Reserve Bank of India under the Payment and Settlement Systems Act of 2007, for the establishment and operation of a payment system in India

About GI Technology Private Limited (GIT)

GI Technology Private Limited (GIT) was founded to realise the Great Indian Dream of raising the living standards of every aspirant Indian. GIT wanted to provide hundreds of millions of underbanked Indians with a safe and convenient way to use cash for online purchases and money transfers. Following a licence granted by the Reserve Bank of India (RBI) on October 29, 2009, GI Technology is the issuer of iCASH, India’s leading prepaid payment instrument (PPI).