The Reserve Bank of India has asked online platform for recharge and bill payments Talkcharge Technologies to stop issuing prepaid wallets to customers who use the platform for payment services.Since the Gurugram-based company did not have any authorisation from the central bank to issue prepaid wallets, the RBI gave it 45 days to return the funds held by its customers and stop offering this service.Elevate Your Tech Prowess with High-Value Skill CoursesOffering CollegeCourseWebsiteIIM KozhikodeIIMK Advanced Data Science For ManagersVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitMITMIT Technology Leadership and InnovationVisitOn Thursday, the central bank said that instead of returning the funds to the customers, Talkcharge Technologies has actually asked its users to return the cashback they had received from the company 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,” RBI said on Thursday.The central bank issued a notice to Talkcharge to immediately stop its payment service on April 2, 2024. Since the entity did not have a wallet licence, the regulator cited provisions under the Payment and Settlement Systems Act, 2007 which the company had flouted.The company was instructed to return the money held in its accounts and also get a ‘no liability’ certificate from a chartered accountant.Talkcharge Technologies mentions Ankush Katiyar and Anshul Katiyar as its directors and one Shivani Gupta as its cofounder. Ankush Katiyar’s LinkedIn profile says he is a graduate from Lovely Professional University and he started the venture in November 2016. Its website says that it offers all forms of bill payments and recharge services.This incident has come to light at a time when even regulated fintech startups are facing heightened scrutiny regarding due diligence on their customers. Even the likes of HDFC Bank and Kotak Mahindra Bank have been penalised recently for failing to adhere to regulatory requirements on data security and information security.On April 24, the RBI asked Kotak Mahindra Bank to stop onboarding new customers through its online channels and for its credit card business. Investment IdeasStock Report PlusePaperWealth EditionView all Stories