The Reserve Bank of India (RBI) has issued a warning to the public regarding the risks associated with using prepaid payment instruments from unauthorized entities. This alert comes after the discovery that TalkCharge Technologies Pvt. Ltd., a Gurgaon-based company, was operating without the necessary authorization from the RBI.
TalkCharge Technologies was specifically called out by the RBI for issuing prepaid wallets through their website and application without prior approval. The RBI had set a deadline for the company to cease all operations and refund any existing balances in the wallets by April 17, 2024. However, this deadline was later extended to May 17, 2024, to allow the company more time to comply.
The RBI also addressed the misleading communications from TalkCharge, which implied that demands for cashback repayment were made under RBI’s instructions. The RBI clarified that its directive was only about refunding prepaid amounts, not reclaiming cashback.
The Chief General Manager of the RBI, Yogesh Dayal, has advised the public to be cautious when dealing with online financial services. Users are encouraged to verify the credentials and authorization status of any financial service provider before making transactions. The RBI maintains a list of authorized payment system operators on its website for reference.
This warning serves as a reminder to always exercise caution and due diligence when using online financial services to protect against potential risks and unauthorized transactions.