The RBI warns about the use of prepaid payment cards by unauthorized organizations
On Thursday, the Reserve Bank of India (RBI) issued a warning to the public about prepaid payment instruments that have been issued by unapproved organizations.
The RBI said, “The public is advised to use extreme caution when utilizing websites and applications and giving their money to any such unauthorised entity.” It said that the general public should confirm and reassure themselves that the website/application they are using, or the organization they are interacting with, is authorized to carry out the activity it does.
You may see the list of authorized payment system operators and suppliers at the RBI website, which is located at https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043.
TalkCharge Technologies Pvt. Ltd., a business with its registered office at Sohna Road, Sector 48, Gurgaon, Haryana, has drawn the attention of the RBI with a red alert for providing prepaid payment instruments (Wallets) via its website and app without first receiving the necessary authorization from the RBI.
The Reserve Bank has learned that the company has sent legal notices to its clients requesting the return of Cashback; if this is not done, the RBI will be notified.
As a result, the company has given its clients the impression that the demand for recovery of the cashback money is being made in accordance with RBI guidelines. The RBI made it clear that TalkCharge Technologies Pvt. Ltd. has only been given instructions to reimburse clients for the prepaid money that is still in their wallets.
On April 2, 2024, the entity received instructions to cease issuing and using its prepaid payment instruments, or wallets, and to return any money stored in the wallets within 15 days. On the business’s request, the deadline was subsequently extended to 45 days, ending on May 17.
