RBI imposes monetary penalty on PhonePe worth Rs 21 lakh
The statutory inspection of the company was conducted by RBI with reference to its operations for the period from October 2023 to December 2024.
Mumbai, 13 September 2025: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 21 lakh on PhonePe Limited (formerly known as PhonePe Private Limited) for non-compliance with certain directions issued by the RBI on Prepaid Payment Instruments (PPIs). The 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 October 2023 to December 2024.
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 a penalty should not be imposed on it for its failure to comply with the said directions.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
According to the RBI, the end-of-day balance in the escrow account of the company was less than the value of outstanding PPls and payments due to merchants on certain days, and the company did not report the shortfall in the said escrow account to the RBI immediately.
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 a monetary penalty is without prejudice to any other action that may be initiated by RBI against the company, it added.
Read Also : DMRC Signs Contract with Alstom for Red and Yellow Lines