Economic Fraud
RBI Comes Down Heavily on TalkCharge for Operating Unauthorized Prepaid Payment Instruments
Mumbai: The Reserve Bank of India (RBI) has recently alerted the public about the risks associated with using prepaid payment instruments issued by unauthorized entities. This warning comes after it was discovered that TalkCharge Technologies Pvt. Ltd., a Gurgaon-based company, was operating without the necessary authorization from the RBI under the Payment and Settlement Systems Act, 2007.
RBI Came Down Heavily on TalkCharge
TalkCharge Technologies has been specifically named by the RBI for issuing prepaid wallets through their website and application without prior approval. The RBI had initially given the firm until April 17, 2024, to stop all operations and refund any existing balances within their wallets. This deadline was later extended to May 17, 2024, following a request from the company for more time to comply with the directive.
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The RBI also addressed the misleading communications from TalkCharge to its customers, which suggested that demands for the repayment of cashback bonuses were made under RBI’s instructions. The RBI clarified that their directive was solely about refunding the prepaid amounts and not about reclaiming any cashback offered.
Advice to the Public
The RBI, through its Chief General Manager, Yogesh Dayal, urges all members of the public to be vigilant when engaging with online financial services. Users should verify the credentials and authorization status of any financial service provider before conducting transactions. The RBI maintains a list of authorized payment system operators on its website, which can be consulted to confirm the legitimacy of a service provider.