The Reserve Bank of India (RBI) has instructed Talkcharge Technologies to halt the issuance and operation of its Prepaid Payment Instruments (PPIs) or wallets. This directive follows the RBI’s observation of the firm issuing wallets without proper authorization. As a result, Talkcharge must refund the balances held in these wallets to customers by May 17, 2024.
Regulatory Intervention
In an order dated April 2, 2024, the RBI directed the Gurugram-based firm to refund the prepaid amounts stored in the wallets to customers. Additionally, the RBI flagged Talkcharge’s issuance of legal notices to customers, demanding the return of cashback and implying regulatory enforcement if not complied with.
Clarification by RBI
The RBI clarified that its directive solely pertains to the refund of prepaid amounts in the wallets to customers. It emphasized that the impression conveyed by Talkcharge to its customers regarding the repayment demand being made as per RBI directions is misleading.
Cautionary Advisory
In light of this incident, the RBI has urged the public to exercise caution when using websites or applications, particularly when loading funds with unauthorized entities. Customers are advised to verify the authorization status of entities before engaging with them for financial transactions.
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