RBI Issues Warning Not To Use Prepaid Wallet Of THIS Company, Says No Approval Received

RBI has cautioned customers that before using any kind of prepaid wallet they need to check whether the wallet they are using is genuine or not. 

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New Delhi: Nowadays, everyone prefers to make payments through digital mode. The biggest advantage of this is that it solves the hassle of carrying cash with you. Apart from this, problems arising due to theft or loss of cash are also avoided. However, many times when using a prepaid wallet, we don't know how legitimate a particular company is.

India's central bank, the Reserve Bank of India (RBI) has cautioned customers that before using any kind of prepaid wallet they need to check whether the wallet they are using is genuine or not. 

According to PTI, the RBI has got hold of a Gurugram-registered company, sRide Tech Pvt Ltd, which, through a carpooling app, was operating an illegal prepaid wallet without obtaining any permission. In such a situation, RBI has asked people to be cautious of such apps because of which you might face trouble.

No Approval Received From RBI

Reserve Bank of India has told the customers that if the customers engage in any kind of prepaid wallet transaction with sRide Tech Pvt. Ltd., then they will be doing so at their own risk.

At the same time, the bank will not have any responsibility in case of loss of money as the app has not taken necessary approvals under the Payment and Redressal System Act, 2007 to operate a prepaid wallet.

All the prepaid wallets in the country like Paytm, Amazon Pay, Google Pay, Phone Pay, BharatPe, etc have all taken permission from the Central Bank to operate in India under the Payment and Redressal System Act, 2007.