RBI issues alert against prepaid payment instruments by illegal entities

The Reserve Bank of India (RBI) on Thursday, 26 April cautioned the public against Prepaid Payment Instruments issued by unauthorised entities.

"Members of public are urged to exercise utmost caution while using websites/ applications, and parting with their money to any such unauthorised entity," the RBI said. Members of the 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, it said.

The list of authorised payment system providers/ authorised payment system operators is displayed on RBI website.

The RBI has issued a red alert against TalkCharge Technologies Pvt. Ltd., a company having its registered office at Sohna Road, Sector 48, Gurgaon in Haryana which is issuing Prepaid Payment Instruments (Wallets) through its website and app without obtaining the required authorisation from RBI.

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 clarified that it has only directed TalkCharge Technologies Pvt. Ltd. to refund the prepaid amount lying in the wallets, to the customers.

The entity was issued directions dated 2 April, 2024, 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 to 17 May.