In a recent development, the Reserve Bank of India (RBI) has issued a cautionary advisory to the public about Prepaid Payment Instruments (PPIs) offered by unauthorised entities. This alert, issued on Thursday (April 26), emphasizes the importance of vigilance while engaging with such platforms.

The RBI has urged individuals to exercise utmost caution when using websites or applications that facilitate financial transactions, particularly those associated with unverified or unauthorised entities. 

The central bank has advised individuals to verify the legitimacy of the platforms they engage with and ensure that they are authorised to conduct the financial activities they offer.

To assist the public in identifying authorised payment system providers and operators, the RBI has directed individuals to consult the full list of authorised payment providers in India.

“Members of public are urged to exercise utmost caution while using websites/application/s, 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 list of authorised payment system providers / authorised payment system operators are displayed on RBI website,” RBI said. 

One entity specifically highlighted in the RBI’s alert is TalkCharge Technologies Pvt. Ltd, a company based in Gurugram, Haryana. The RBI has identified TalkCharge Technologies as operating Prepaid Payment Instruments (Wallets) without obtaining the necessary authorization from the regulatory body.

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Further scrutiny revealed that TalkCharge Technologies Pvt. Ltd. had sent legal notices to its customers, demanding the return of Cashback. This action created an erroneous impression among customers that such demands were made under the directive of the RBI. The RBI has clarified that it has not issued any such directive to demand cashback repayments. Instead, it has instructed TalkCharge Technologies Pvt. Ltd. to refund the prepaid amounts stored in its wallets to customers.

In response to these findings, the RBI issued directions to TalkCharge Technologies Pvt. Ltd. on April 2, 2024, instructing it to cease the issuance and operation of its Prepaid Payment Instruments and initiate refunds to customers within 15 days. 

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Subsequently, at the entity’s request, this deadline was extended to May 17, 2024.

This alert serves as a reminder for the public to remain cautious while engaging in financial transactions, especially online, and to verify the authenticity and regulatory compliance of the platforms they utilize.

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