Page 50 - BANKING FINANCE JUNE 2016

RBI CIRCULAR

i. Issue a public notice in English, Hindi and a cancellation of the associated project, etc.) in

vernacular language, in print/visual media, on support of its intent for such voluntary

three different occasions, informing the surrender, a certificate from its chartered

customer/merchants about its intent to close accountant in respect of non-commencement

its payment systems operations. Such public of any payment system operations by the

notice, shall interalia indicate that the entity, a copy of the latest audited balance

customers can either use the balances on PPI sheet of the entity.

or obtain refund, by credit to a bank account, 2. Based on the information submitted, the Bank

within a stipulated time-line by making a will process the request for cancellation of

request to the company, the mode of receipt such COA.

of such requests for redemption, name, 3. On receipt of the advice from the Bank about
contact address, phone number and email id acceptance of the request for voluntary
of a Nodal officer to whom such requests can surrender of COA, the entity shall submit the
be sent by the customer, time-line within original COA to CGM, DPSS, CO, Mumbai for
which the company would redeem the cancellation.
balance after receipt of request from the
customer. 5. These directions are issued by the Bank, in
exercise of the powers conferred by section
ii. Submit monthly progress report to the Bank 18 of the Payment and Settlement Systems
regarding the progress in extinguishing the Act, 2007 (Act 51/2007)
customer/merchant liabilities.

3. In case of authorised MTSS- Overseas Principals, Yours faithfully
the above process, as applicable, should be (Nanda S. Dave)

followed in respect of liabilities to customers and Chief General Manager

Indian Agents.

4. For refund to the customers of a PPI issuer, the Foreign Exchange Management (Exports

Bank would also advise the respective Escrow of Goods and Services) Regulations, 2015
account bank for allowing one time refund of the
RBI/2015-16/395
balance to the PPI holder's bank accounts.

5. On completing the process of extinguishing the A.P. (DIR Series) Circular No.68 [(1)/23(R)]

liability to customers/merchants the entity would All AD Category - I Authorised Dealer Banks
be required to submit a 'No liability' certificate

from its chartered accountant to the Bank. Madam/ Sir

6. Based on the information submitted, the Bank will 1. Attention of Authorised Dealers (ADs) is invited to

process the request for cancellation of such COA. A.D.(M.A. Series) Circular No. 11 dated May 16, 2000

7. On receipt of the advice from the Bank about in terms of which ADs were advised of various Rules,

acceptance of the request for voluntary surrender Regulations, Notifications/ Directions issued under the

of COA, the entity shall submit the original COA to Foreign Exchange Management Act, 1999 (hereinafter

CGM, DPSS, CO, Mumbai for cancellation. referred to as the Act). On a review it is felt necessary

II. Entity has not commenced operations as a PSO: to revise the regulations issued under the Foreign
1. Such an entity needs to submit the following Exchange Management (Exports of Goods and Services)
documents to Department of Payment and Regulations, 2000 as amended from time to time.
Settlement Systems, Central Office, Reserve Accordingly, in consultation with the Government of
Bank of India, Mumbai: A request in writing India, the said regulations have been repealed and
by its authorised signatory, along with a copy superseded by the Foreign Exchange Management
of its recent Board Resolution, indicating its (Exports of Goods and Services) Regulations, 2015.

intent and the reason for such voluntary 2. The new regulations have been notified vide

surrender of COA, any other documents (like Notification No. FEMA. 23(R)/2015-RB dated January

50 | 2016 | JUNE | BANKING FINANCE

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