The Reserve Bank of India (RBI) has, by an order dated March 23, 2026, imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand only) on Pine Labs Limited (formerly known as Pine Labs Private Limited) [the company] for non-compliance with certain provisions of the directions issued by RBI on ‘Prepaid Payment lnstruments (PPIs)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007. The statutory inspection of the company was conducted by RBI with reference to its operations for the period from July 2024 to May 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the charge against the company of issuing several Full-KYC Prepaid Payment lnstruments (PPIs) without completing Know Your Customer (KYC) of the PPI holders was sustained, warranting imposition of monetary penalty. The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the company. (Brij Raj)
Chief General Manager Press Release: 2025-2026/2336 | |