RBI Directs Talkcharge to Cease PPI Operations and Refund Balances

The Reserve Bank of India (RBI) has instructed Talkcharge Technologies to cease the issuance and operation of its Prepaid Payment Instruments (PPIs) or wallets.

 The guidelines follow the central bank authority's observation of issuing wallets without proper authorization. As a result, Talkcharge must refund the balances held in these wallets to customers by May 17, 2024.

In an order dated April 2, 2024, the RBI directed the Gurugram-based firm to refund the prepaid amounts stored in the wallets to customers. Additionally, the RBI flagged Talkcharge's issuance of legal notices to customers, demanding the return of cashback and implying regulatory enforcement if not complied with.

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The RBI sought to clarify that its directive solely pertains to the refund of prepaid amounts in the wallets to customers. It emphasized that the impression conveyed by Talkcharge to its customers regarding the repayment demand being made as per RBI directions is misleading.

As this incident took place the RBI has urged the public to exercise caution when using websites or applications, particularly when loading funds with unauthorised entities.

 Customers are advised to verify the authorization status of entities before engaging with them for financial transactions.

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