Because the Gurugram-based firm didn’t have any authorisation from the central financial institution to subject pay as you go wallets, the RBI gave it 45 days to return the funds held by its prospects and cease providing this service.
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On Thursday, the central financial institution mentioned that as an alternative of returning the funds to the shoppers, Talkcharge Applied sciences has truly requested its customers to return the cashback that they had obtained from the corporate upon utilizing its providers.
“Thus, the entity has created an impression within the minds of its prospects that demand for compensation of cashback quantity is being made as per the instructions of the RBI. It’s clarified that the RBI has solely directed the entity to refund the pay as you go quantity mendacity within the wallets, to the shoppers,” RBI mentioned on Thursday.
The central financial institution issued a discover to Talkcharge to instantly cease its cost service on April 2, 2024. Because the entity didn’t have a pockets licence, the regulator cited provisions underneath the Fee and Settlement Techniques Act, 2007 which the corporate had flouted.
The corporate was instructed to return the cash held in its accounts and likewise get a ‘no legal responsibility’ certificates from a chartered accountant.
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Talkcharge Applied sciences mentions Ankush Katiyar and Anshul Katiyar as its administrators and one Shivani Gupta as its cofounder. Ankush Katiyar’s LinkedIn profile says he’s a graduate from Beautiful Skilled College and he began the enterprise in November 2016. Its web site says that it presents all types of invoice funds and recharge providers.This incident has come to gentle at a time when even regulated fintech startups are dealing with heightened scrutiny concerning due diligence on their prospects. Even the likes of HDFC Financial institution and Kotak Mahindra Financial institution have been penalised not too long ago for failing to stick to regulatory necessities on knowledge safety and knowledge safety.
On April 24, the RBI requested Kotak Mahindra Financial institution to cease onboarding new prospects by means of its on-line channels and for its bank card enterprise.
