Recorded RBI impact
Fine: Rs 3.10 L
Monetary penalty · Fresh imposition
Published by RBI
27 Mar 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹3.10 lakh on Pine Labs Limited, formerly known as Pine Labs Private Limited, by order dated March 23, 2026. The penalty was levied under section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007 for non-compliance with RBI directions on prepaid payment instruments. RBI’s inspection for the period July 2024 to May 2025 found that the company had issued several Full-KYC PPIs without completing KYC of the PPI holders. After considering the company’s reply, additional submissions, and oral hearing, RBI sustained the charge and imposed the penalty. The release notes that the action is based on regulatory non-compliance and does not pronounce on the validity of any transaction or agreement with customers.
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 operations from July 2024 to May 2025 found non-compliance with RBI directions on PPIs. The sustained charge was that Pine Labs Limited issued several Full-KYC PPIs without completing Know Your Customer (KYC) of the PPI holders.
Operating Impact
Pine Labs must absorb the monetary penalty and address the compliance gaps identified by RBI, particularly around KYC for Full-KYC PPIs. The order does not itself impose a business restriction, but the company remains exposed to further supervisory action if similar deficiencies 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 3.10 L
- Order Date
- 23 Mar 2026
- Effective From
- 23 Mar 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity