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RBI CIRCULAR
RBI CIRCULAR
Guidelines for Voluntary surrender of 4. Process to be followed by the PSO:
Certificate of Authorisation (COA) by I. Entity has commenced PSO operations:
1. Such an entity needs to submit the following
Payment System Operators (PSOs) documents to Department of Payment and
authorised under PSS Act 2007 Settlement Systems, Central Office, Reserve
Bank of India, Mumbai:
RBI/2015-16/396 A request in writing by its authorised
DPSS.CO.AD.No.2627/02.27.005/2015-16 signatory, along with a copy of its recent
Board Resolution, indicating its intent and the
All entities authorised under the Payment & Settlement reason for such voluntary surrender of COA is
Systems Act, 2007 (PSS Act) needed.
Dear Sir/Madam, A statement certified by its Chartered
1. As you are aware, in terms of section 4 of the Payment Accountant in respect of number and amount
of outstanding PPIs. Such statement should
and Settlement Systems Act, 2007 (PSS Act) it is also indicate the name of its Escrow account
mandatory to seek authorisation from the Reserve details, outstanding Escrow amount, and
Bank of India (the Bank) to commence or operate a liabilities to merchants.
payment system in the country. Section 8 of the PSS
Act empowers the Bank to revoke such authorisation A 'Memorandum of Procedure (MoP)'
under circumstances as provided therein. interalia, indicating the process to be adopted
for extinguishing/ repaying the liabilities to
2. We have been receiving requests from PSOs namely the customer/ merchants is to be given. This
Pre-paid Payment Instrument (PPI) Issuers and Money should also include the processes and time-line
Transfer Service Scheme (MTSS) - Overseas Principals, for extinguishing the liabilities outstanding to
for surrendering and consequent cancellation of the the customer/merchants.
COA on voluntary basis. Based on the experience
gained so far, the Bank is issuing these Guidelines for In case of MTSS - Overseas Principals, the
voluntary surrender of CoA by such entities authorised above process should be followed in respect
under the PSS Act, 2007. of liabilities to customers and Indian Agents.
3. Applicability: These guidelines for voluntary surrender An undertaking duly signed, by its authorised
of CoA are applicable to Payment System Operators, signatory, and clearly stating that it would not
namely PPI issuers, MTSS- Overseas Principal, incur any fresh liability during this process of
authorised under PSS Act 2007. This option of voluntary drawing down of Payment system operations
surrender of COA is available only to those entities is needed.
which have either, not commenced Payment System
operations, or intend to discontinue such operations. 2. Based on the merits of the case, the Bank will
process such requests and advise the entity to
initiate the following process as applicable:
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