RBI asks 'Talkcharge' to refund customers, says company issuing wallets without its permission

RBI

The Reserve Bank of India (RBI) on April 25 said it has directed Gurgaon-based TalkCharge Technologies to refund the prepaid amount lying in the wallets to the customers after observing that the company is issuing wallets without the central bank's permission.

The RBI said it has come to the notice of the RBI that TalkCharge Technologies is issuing Prepaid Payment Instruments (Wallets) through its website and app ‘TalkCharge’ without obtaining the required authorisation from RBI under the provisions of the Payment and Settlement Systems Act, 2007.

"Accordingly, the entity was issued directions dated April 02, 2024 (attached) to stop 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)," the RBI said.

The RBI further said it has noticed that Talkcharge 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 RBI said, adding this wasn't directed by 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," the central bank clarified.

Further, the central bank cautioned the members of 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," the RBI said.