The Reserve Bank of India (RBI) on Tuesday suspended Tech-Mahindra’s license for issuing pre-paid cards followed by the voluntary surrender of authorisation by the Noida-based firm.
The regulator stated that the certificate of authorisation (COA) was issued in November 2013.
“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.
Post the cancellation of COA, the company will not be able to transact the business of pre-paid card issuance. Following this, the shares of the company dropped by 1 percent during Wednesday morning session.
The software major recently announced its partnership with Microsoft to create a Blockchain-based solution to curb the menace of the spam calls. It will congregate all the relevant parties in the ecosystem onto Blockchain, enabling telecom service providers and telemarketers tap preference registration and consent acquisition, in line with the Telecom Regulatory Authority of India (TRAI) regulation.