The Reserve Bank of India (RBI) has directed Talkcharge Technologies to stop issuing and operating its prepaid payment instrument (PPI) or wallet. The direction comes after RBI’s observation of firms issuing wallets without proper authorisation. As a result, Talkcharge will have to refund the balance held in these wallets to customers by May 17, 2024.
regulatory intervention
In an order dated April 2, 2024, RBI directs Gurugram based firm To refund the prepaid amount stored in the wallet to the customers. Additionally, RBI warned of issuing legal notices to customers by Talkcharge, demanding refund of cashback and imposing regulatory enforcement if non-compliance occurs.
Clarification by RBI
RBI clarified that its direction is solely related to refund of prepaid amount to the wallets of customers. It emphasized that the impression given by Talkcharge to its customers regarding repayment demands being made as per RBI directions is misleading.
cautionary advice
In light of this incident, the RBI has urged the public to exercise caution while using websites or applications, especially when loading funds with unauthorized entities. Customers are advised to verify their authorization status before engaging with entities for financial transactions.