The Reserve Bank of India (RBI) has cancelled the Certificate of Authorisation (CoA) of two Payment System Operators (PSOs) — Muthoot Vehicle and Asset Finance Limited and Eko India Financial Services Private Limited — on January 4, citing non-compliance with regulatory requirements under the Payment and Settlement Systems Act, 2007.
Both Muthoot Vehicle and Asset Finance Limited and Eko India Financial Services Private Limited had the certificate of authorisation issued by the RBI for issuance and operation of prepaid payment instruments.
"Following the cancellation of the Certificate of Authorisation (CoA), these companies cannot transact the business of issuance and operation of prepaid payment instruments," RBI mentioned in its press release.
The RBI further mentioned in its press release that the COA cancellation came into force on December 31, 2021. But RBI clarified in its notice that the customers or merchants who have a valid claim on these companies as PSOs can approach them for settlement of their claims within three years from the date of cancellation
Muthoot Vehicle and Asset Finance Ltd. (MVFL), is the Vehicle and Asset Finance Division of The Muthoot Group. The Company was incorporated in 1992 as Muthoot Leasing and Finance Ltd. In the year 2008, the name of the Company was formally changed to Muthoot Vehicle and Asset Finance Ltd to correctly highlight the nature of financial solutions being provided by the Company. MVFL, as per the certification by Reserve Bank of India, is a Deposit taking Asset Finance Company (DAFC).
Eko India Financial Services Private Limited is a private organization incorporated in 2007. it is classified as a non-govt company and is registered at the Registrar of Companies, Delhi.
Eko claims to have served over 50 Million customers till date, and is available over a merchant network of 1,50,000 customers. As mentioned on their official website, it enables over 7 Million banking transactions a month. It has its own networks and provide APIs to over 300 partners who have built their own business on top of the Eko platform.