RBI Directs Talkcharge to Cease PPI Operations and Refund Balances
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.
![RBI Directs Talkcharge to Cease PPI Operations and Refund Balances](https://www.psuconnect.in/sdsdsd/rbi_pay7.jpg)
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.
Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoYThe 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.
Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail depositsNews Must Read
- Karnataka Bank Announced record Q1 Net Profit at Rs. 400.33 CR
- NTPC, BHEL shares soar higher amid JV announcement in Budget 2024
- BEL signs tripartite MoU for manufacture of indigenised ammunition
- Goa Shipyard Limited launched first indigenous P1135.6 Frigate
- Chandan Sinha appointed as Non-Executive Part Time Chairman of RBL Bank
- OIL and Dolphin Drilling signs contract for hiring of Blackford Dolphin
- Cmde D.K. Murali, IN (Retd.) Joins as CMD of BECIL
- Samir Chandra Saxena Appointed as Director (Market Operation) of GRID-INDIA
- MOIL CMD bags Title 'CEO of the Year'
- ONGC sign MoU with GSI to advance geothermal exploration in Ladakh