TalkCharge Tech moves HC against RBI order to stop payment service ops
This story was originally published at 13:42 IST on 10 October 2024
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NEW DELHI – TalkCharge Technologies Pvt. Ltd. has moved the Delhi High Court against the Reserve Bank of India's order in April, asking the online platform for recharge and bills to stop its payment service operations. The high court asked TalkCharge to serve a copy of its petition to the Reserve Bank of India.
In April, the RBI asked TalkCharge to stop issuing prepaid wallets to customers who used its platform for payment services. The central bank cited provisions under the Payment and Settlement Systems Act, 2007, which the Gurugram-based company had flouted, since TalkCharge did not have a wallet licence. The RBI had instructed the company to return the money held in its accounts and also get a no-liability certificate from a chartered accountant.
Thereafter, the RBI said that instead of returning the funds to the customers, the company had asked its users to return the cashback they had received from TalkCharge upon using its services. "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 to refund the prepaid amount lying in the wallets, to the customers," said RBI.
Contending the RBI's action, TalkCharge said that it operates as a closed Prepaid Payment Instrument, a system where funds can only be used within the platform, which does not require the central bank's authorisation. TalkCharge said that many of its users violated its terms and conditions by using the platform for commercial purposes. This led to increased refunds and chargebacks, which hurt the company financially, said TalkCharge. End
Reported by Surya Tripathi
Edited by Manisha Baxla
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