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RBI directs TalkCharge to return funds in PPI- wallets to consumers The Reserve Bank of India (RBI) on Thursday directed Gurugram-based company TalkCharge to refund the prepaid funds held in the wallets of its customers. This directive comes as TalkCharge has been issuing Prepaid Payment Instruments (Wallets) without proper authorisation from the central bank. What had happened? TalkCharge offers services such as cashbacks, coupons, and wallets to customers. The company had issued a legal notice to its customers demanding the return of cashback while threatening them that failure to do so would result in the matter being reported to the RBI. The fintech firm has created an impression in the minds of its customers that demand for repayment of cashback amount is being made as per the directions of the RBI. The central bank had issued directions on April 2, 2024, to the entity to stop the issuance and operation of its Prepaid Payment Instruments or Wallets and refund the balances held in the wallets within 15 days. Later, it was extended by 45 days (May 17, 2024) at the entity's request. What did the regulator say? The Reserve Bank said it had come to the notice of the central bank that TalkCharge Technologies is issuing PPI through its website and app (application) 'TalkCharge' without obtaining the required authorisation under the provisions of the Payment and Settlement Systems Act, 2007. Further, the Central bank also cautioned the public to exercise utmost caution while using websites/applications and parting with their money to any such unauthorised entity. "Members of the public should verify and satisfy themselves that the website/application used or the entity they are dealing with is authorised to carry out the activity it performs," the RBI said. What should consumers do? This incident has come to light at a time when even regulated fintech startups are facing heightened scrutiny regarding due diligence on their customers. As this situation unfolds, it serves as a reminder for individuals to thoroughly check the credentials of digital payment platforms before entrusting them with their money. www.business-standard.com dt. 27.04.2024

RBI directs TalkCharge to return funds in PPI- wallets to consumers

The Reserve Bank of India (RBI) on Thursday directed Gurugram-based company TalkCharge to refund the prepaid funds held in the wallets of its customers. This directive comes as TalkCharge has been issuing Prepaid Payment Instruments (Wallets) without proper authorisation from the central bank.

What had happened?

TalkCharge offers services such as cashbacks, coupons, and wallets to customers. The company had issued a legal notice to its customers demanding the return of cashback while threatening them that failure to do so would result in the matter being reported to the RBI. The fintech firm has created an impression in the minds of its customers that demand for repayment of cashback amount is being made as per the directions of the RBI.

The central bank had issued directions on April 2, 2024, to the entity to stop the issuance and operation of its Prepaid Payment Instruments or Wallets and refund the balances held in the wallets within 15 days. Later, it was extended by 45 days (May 17, 2024) at the entity's request.

What did the regulator say?

The Reserve Bank said it had come to the notice of the central bank that TalkCharge Technologies is issuing PPI through its website and app (application) 'TalkCharge' without obtaining the required authorisation under the provisions of the Payment and Settlement Systems Act, 2007.

Further, the Central bank also cautioned the public to exercise utmost caution while using websites/applications and parting with their money to any such unauthorised entity.

"Members of the public should verify and satisfy themselves that the website/application used or the entity they are dealing with is authorised to carry out the activity it performs," the RBI said.

What should consumers do?

This incident has come to light at a time when even regulated fintech startups are facing heightened scrutiny regarding due diligence on their customers. As this situation unfolds, it serves as a reminder for individuals to thoroughly check the credentials of digital payment platforms before entrusting them with their money.

www.business-standard.com dt. 27.04.2024