Former Post Office boss Paula Vennells has said she will hand back her CBE with immediate effect.
It comes after the fallout of the Horizon IT scandal which led to the wrongful prosecution of hundreds of sub-postmasters.
In a written statement issued to the PA news agency, Paula Vennells said: "I continue to support and focus on co-operating with the inquiry and expect to be giving evidence in the coming months.
"I have so far maintained my silence as I considered it inappropriate to comment publicly while the inquiry remains ongoing and before I have provided my oral evidence.
Paula Vennells has returned her CBE "with immediate effect"
PA
"I am, however, aware of the calls from sub-postmasters and others to return my CBE. I have listened and I confirm that I return my CBE with immediate effect.
"I am truly sorry for the devastation caused to the sub-postmasters and their families, whose lives were torn apart by being wrongly accused and wrongly prosecuted as a result of the Horizon system.
"I now intend to continue to focus on assisting the inquiry and will not make any further public comment until it has concluded."
A petition demanding that her CBE be rescinded had hit 1.2 million signatures.
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Lia Williams as Paula Vennells in Mr Bates vs The Post Office ITVThe awareness of the case came to the forefront of public attention following the ITV drama Mr Bates vs The Post Office.
Sky News reports that, while honours can only be forfeited to the King, a recipient can renounce theirs voluntarily.
This involves them ceasing to refer to themselves with the title while they go through the process to get it annulled by the monarch.
A Government source said that Paula Vennells effectively handing back her CBE was "the right thing to do".
Jo Hamilton, who was wrongfully convicted in 2008 of stealing thousands of pounds from the village shop in South Warnborough, Hampshire, told the PA news agency: "It shows the people have spoken, about everything really.
“It’s not just about her CBE, it’s about how disgusting the whole thing is.
"We’re all sick and tired of people taking money, being paid exorbitant amounts of money, and politicians taking absolutely no notice of you whatsoever... I think the people are just sick of it."
She added: "I’m glad she’s given it back. It’s a shame it took just a million people to cripple her conscience."