RBI warns of unscruplous wallets: After several cases of violations by fintech companies including unverified onboarding of customers , Reserve Bank of India (RBI) has cautioned people against prepaid payment instruments issued by unauthorised entities. 

In its circular,  the RBI said it has come to its notice that TalkCharge Technologies Pvt. Ltd, a Gurgaon-based company was issuing Prepaid Payment Instruments such as wallets through its website and application. 

The central bank in its circular said the technology company was issuing Prepaid Payment Instruments (Wallets) through its website and app (application) ‘TalkCharge’ without obtaining the required authorisation from RBI under the provisions of the Payment and Settlement Systems Act, 2007. 

Despite a directive to stop issuance and operation of its Prepaid Payment Instruments or wallets, and refund the balances held in the wallets within 15 days, the company TalkCharge Technologies Pvt. Ltd was continuing to issue and operate its prepaid payment instruments. 

“It has come to the notice of the Reserve Bank that the entity has issued a legal notice to its customers demanding the return of Cashback, failing which the matter will be reported to the RBI,” said the RBI circular.

“Thus, 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. 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,” said the circular.