Case Brief
What Happened
RBI imposed a monetary penalty of ₹21 lakh on PhonePe Limited (formerly PhonePe Private Limited) for non-compliance with certain RBI directions on prepaid payment instruments. The penalty followed a statutory inspection for the period October 2023 to December 2024, which found that the company’s end-of-day escrow balance was below the value of outstanding PPIs and payments due to merchants on certain days, and that the shortfall was not reported to RBI immediately. The penalty was imposed under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.