RBI cautions public against Prepaid Payment Instruments issued by unauthorised entities

The RBI on Thursday said Gurugram-registered TalkCharge Technologies Pvt. Ltd. having its registered office at Unit No. 323, JMD Megapolis, 3rd Floor, Sohna Road, Sector 48, Gurgaon, Haryana-122018, is issuing Prepaid Payment Instruments (Wallets) through its website and app (application) ‘TalkCharge’ without obtaining the required authorization from RBI under the provisions of the Payment and Settlement Systems Act, 2007.

The Central Bank issued notice to the above entity on April 2, 2024, to stop the issuance and operation of its Prepaid Payment Instruments or Wallets and refund the balances held in the wallets within 15 days (which was later extended on the entity’s request to 45 days, i.e., by May 17, 2024), said the circular.

It has come to the notice of RBI that the above entity has issued a legal notice to its customers demanding the return of Cashback, failing which the matter will be reported to the RBI. RBI clarified to the general public it only directed ‘TalkCharge Technologies Pvt. Ltd’, to refund the prepaid amount lying in the wallets, to the customers. However, the above entity has deliberately given the impression to the minds of the customers that the demand for repayment of the cashback amount is being made as per the directions of the RBI.
“It is clarified that the RBI has only directed the entity (TalkCharge Technologies Pvt. Ltd.) to refund the prepaid amount lying in the wallets, to the customers” said RBI..
“Members of public are urged to exercise utmost caution while using websites / application/s and parting with their money to any such unauthorised entity. Members of public should verify and satisfy themselves that the website/application used or the entity they are dealing with is authorised to carry out the activity it performs”, it added.
The list of authorised payment system providers / authorised payment system operators is displayed on the RBI website at https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043.

Surendra Naik

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Surendra Naik

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