Mumbai: RBI Issues Caution Against Unauthorized Prepaid Payment Instruments
The Reserve Bank of India (RBI) issued a cautionary statement on Thursday, urging the public to be wary of Prepaid Payment Instruments issued by unauthorized entities.
In its advisory, the RBI emphasized the importance of exercising caution while engaging with websites or applications, especially when transferring funds to unverified sources. It recommended individuals to verify the authorization of the entity they are transacting with and ensure its legitimacy.
The RBI directed the public to refer to the list of authorized payment system providers and operators displayed on its official website for reference.
Furthermore, the RBI issued a red alert specifically against TalkCharge Technologies Pvt. Ltd., based in Gurgaon, Haryana. The company has been reported for issuing Prepaid Payment Instruments (Wallets) through its platform without obtaining the necessary authorization from the RBI.
The central bank highlighted that TalkCharge Technologies Pvt. Ltd. had issued legal notices to customers, demanding the return of Cashback under the guise of RBI directives. However, the RBI clarified that it had solely directed the company to refund the prepaid amounts held in the wallets to customers.
Consequently, TalkCharge Technologies Pvt. Ltd. was instructed by the RBI, through directions dated April 2, 2024, to cease the issuance and operation of its Prepaid Payment Instruments and facilitate the refund of wallet balances within 45 days, extending from the initial 15-day period.
