REGULATORY · COMPETITIVE · INDIA
RBI imposes Rs 3.1 lakh penalty on Cashfree
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The Reserve Bank of India on March 9 imposed a Rs 3.1 lakh monetary penalty on Cashfree Payments India Private Ltd for non-compliance with its directions.
Why it matters
A statutory inspection covering the company's operations from April 2024 to June 2025 identified an impermissible debit from an escrow account. RBI issued a notice to the company and imposed the Rs 3.1 lakh penalty after the charges were sustained. The penalty was imposed through an order dated March 9 under sections 30(1) read with 26(6) of the Payment and Settlement Systems Act, 2007. RBI stated the action was based on deficiencies in statutory and regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement.
Implications
- • Regulatory record of non-compliance for an impermissible escrow-account debit recorded against the firm.
- • Enforcement action executed under sections 30(1) and 26(6) of the Payment and Settlement Systems Act, 2007.
- • A statutory inspection covering April 2024–June 2025 preceded the penalty.
- • A monetary penalty was imposed following issuance of a notice and sustenance of charges.
Who is affected
- • Payment aggregators and payment gateways operating under RBI PA/PG guidelines
- • Compliance and legal teams at payment firms
- • RBI supervisory and enforcement units
Source
Topics
Law & Public Safety Compliance Finance & Banking Banking Regulation Fintech & Payments