RBI cautions public against using unauthorised prepaid payment entities
Apr 25, 2024
New Delhi [India], April 25 : The Reserve Bank of India (RBI) has urged the public to exercise utmost caution while using websites or applications, and parting with their money to any such unauthorized entity.
Through a release on Thursday, the central bank asked the public to verify and satisfy themselves that the website or application used or the entity they are dealing with is authorized to carry out the activity it performs.
The list of authorized payment system providers / authorized payment system operators is displayed on the RBI website.
This latest advisory to the public comes after the RBI noticed that TalkCharge Technologies Pvt. Ltd. (entity), a company 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.
Accordingly, the entity was issued directions on April 02, 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, by May 17, 2024).
"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 RBI said.
In the release, RBI today clarified that it has only directed the entity to refund the prepaid amount lying in the wallets, to the customers.
