RBI directs Talkcharge to stop PPI, wallet issuance; refund balances

The Reserve Bank of India (RBI) has directed fintech firm Talkcharge Technologies to stop the issuance and operation of its Prepaid Payment Instruments (PPIs) or wallets, and refund the balances held in them to customers by May 17 this year. This has come after the central bank observed that the firm is issuing wallets without its permission.

The RBI had directed the Gurugram-based firm to refund the prepaid amount lying in the wallets to the customers in an order dated April 2, 2024.

The regulator also pointed out that 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 offers services such as cashbacks, coupons, and wallets to customers.

“The entity 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 regulator said in a release on Thursday.

RBI has clarified that it had only directed the refund of the prepaid amount lying in the wallets to customers. "It is clarified that the RBI has only directed the entity (Talkcharge Technologies Pvt. Ltd.) to refund the prepaid amount lying in the wallets, to the customers," the central bank clarified.

The banking regulator has urged customers to exercise caution while using websites or applications and loading money with unauthorised entities.

“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.