Recorded RBI impact
Fine: Rs 5.80 L
Monetary penalty · Fresh imposition
Published by RBI
15 May 2026
Case Brief
By an order dated May 11, 2026, RBI imposed a monetary penalty of Rs 5.80 lakh on Appnit Technologies Private Limited. The penalty was levied under the Payment and Settlement Systems Act, 2007 after a statutory inspection found non-compliance with RBI directions on KYC and PPI. RBI said the company allowed PPI accounts opened using Aadhaar OTP-based e-KYC to continue for more than one year without performing identification as required, and also failed to implement a system for periodic review of risk categorisation of accounts.
Why RBI Acted
RBI imposed a monetary penalty under section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007 after a statutory inspection covering April 2024 to August 2025. The company was found to have breached RBI directions on Know Your Customer (KYC) and Prepaid Payment Instruments (PPI) by allowing PPI accounts opened through Aadhaar OTP-based e-KYC to remain active for more than one year without carrying out identification as required, and by failing to maintain a system for periodic review of risk categorisation of accounts.
Operating Impact
Appnit Technologies Private Limited must absorb the monetary penalty and address the compliance gaps identified by RBI. The order does not itself withdraw any licence or impose an operating restriction, but the company remains exposed to further supervisory or enforcement action if similar breaches continue.
Regulatory Basis
- section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 5.80 L
- Order Date
- 11 May 2026
- Effective From
- 11 May 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity