RBI warns against using prepaid payment instruments from unauthorised entities

The Reserve Bank of India has cautioned members of the public against Prepaid Payment Instruments issued by unauthorised entities.

In this regard, the central bank’s advisory referred to Gurgaon-based TalkCharge Technologies Pvt. Ltd. (entity), issuing Prepaid Payment Instruments/PPIs (Wallets) through its website and app (application) ‘TalkCharge’ without obtaining the required authorisation under the provisions of the Payment and Settlement Systems Act, 2007.

The entity was issued directions dated April 02, 2024 to stop issuance and operation of its PPIs or Wallets and refund the balances held in the wallets within 15 days (which was later extended on the entity’s request to 45 days -- to May 17, 2024), RBI said in a statement.

“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.

“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,” per the statement.

The central bank emphasised that the RBI has only directed the entity (TalkCharge Technologies Pvt. Ltd.) to refund the prepaid amount lying in the wallets to the customers.

We will continue to do comprehensive asset management which is value driven like the recent renovation of Taj Mansingh in Delhi and Taj Usha Kiran Palace in Gwalior.

We have added our exclusive business club The Chambers in Taj West End in Bengaluru. We have started renovation and extension of Chambers in Taj Bengal. This year investments will also go into developing digital competencies.

We are launching new websites starting next week for Taj and then for other brands.

Other digital initiatives include a data lake for advanced analytics and a new ERP system.

How will this digital initiative help customers?

Our new websites will o§er a seamless customer journey across platforms, including the Tata Neu app. We are pleased with the evolution of our loyalty programme.

Tata Neu is doing very well for us. Today, 29 per cent of our enterprise revenue is loyalty-led which is 2.5x of what it was 3-4 years ago.

Is there investment planned for the re-imagined Gateway brand?

It will be a mix of both existing and new properties. There are new hotels planned in Bengaluru, Barnala, in Sarnath near Varanasi, in Jaipur, Gandhidham and so on.

It will be a combination of owned and managed properties. As a full-service four-star hotels these would also contribute to our F&B and banquet revenue. This year, we plan to introduce six hotels under the Gateway brand, including two in the first quarter of FY25.

What is the development pipeline for FY25?

We plan to open 25 hotels in FY25 including two in Bhutan. Last year, we signed for 53 hotels,which is like one signing a week.

The momentum is strong and the launch of reimagined Gateway brand will open more opportunities in tier II-III towns and emerging micro markets in metro cities.

How is the demand in the current quarter?

Our business is trending at double-digit growth in April compared to last year. Overall, I am optimistic about the outlook.