RBI orders Gurugram-based TalkCharge to refund PPI-Wallet Funds to Customers

RBI ordered TalkCharge Technologies to refund unapproved Prepaid Payment Instrument (Wallet) balances. Members of the public should exercise caution when using unauthorized websites or applications.

Reserve Bank of India on Thursday said it has directed Gurugram-based TalkCharge Technologies Pvt Ltd, which is issuing Prepaid Payment Instruments (Wallets) without authorisation of the central bank, to refund the prepaid amount lying in the wallets of the customers.

The RBI also cautioned the public to exercise utmost caution while using websites/ applications 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 said in a statement.

The Reserve Bank said it had come to the notice of the central bank that TalkCharge Technologies is issuing PPI through its website and app (application) 'TalkCharge' without obtaining the required authorisation under the provisions of the Payment and Settlement Systems Act, 2007.

The central bank issued directions dated April 2, 2024, to the entity to stop the issuance and operation of its Prepaid Payment Instruments or Wallets and refund the balances held in the wallets within 15 days. Later, it was extended by 45 days (May 17, 2024) at the entity's request.

''It has come to the notice of the Reserve Bank that the entity has issued a legal notice to its customers demanding the return of cashback, failing which the matter will be reported to the RBI.

''Thus, the entity has created an impression in the minds of its customers that demand for repayment of cashback amount is being made as per the directions of the RBI,'' the statement said.

The central bank clarified that it has only directed TalkCharge Technologies to refund the prepaid amount lying in the wallets to the customers.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)