Be cautious about illegal prepaid payment instruments: RBI alerts

Mumbai: The Reserve Bank of India (RBI) issued a cautionary alert to the public regarding unauthorized entities offering Prepaid Payment Instruments (PPIs). The warning emphasized concerns about these entities failing to adhere to RBI regulations and urged the public to be vigilant when engaging with such services.

“Members of the 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 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 April 2, 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 to May 17.

Source: IANS