RBI criticizes TalkCharge and warns users for operating unauthorized prepaid payment instruments

Recently, the Reserve Bank of India warned the public about the risks regarding using prepaid payment instruments issued by unauthorized entities. This comes after the discovery that Gurgaon-based company - TalkCharge Technologies was operating without the necessary authorization from the RBI under the Payment and Settlement Systems Act, 2007.

RBI has mentioned specifically about TalkCharge Technologies for issuing prepaid wallets through their website and application without prior approval. The central bank initially gave time until April 17, 2024 to the firm to stop all operations and refund any existing balances within their wallets. Later, the deadline was extended to May 17, 2024 following a request from the company for more time to comply with the directive.

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.

RBI requested all members of the public to be attentive while engaging with online financial services. The credentials and authorization status of any financial service provider should be verified by the users 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.