The RBI has imposed a penalty of ₹3.1 Lakh on Pine Labs for failing to comply with guidelines related to prepaid payment instruments (PPIs)
The central bank, in a statement, said it found Pine Labs in violation of PPI norms by issuing full-KYC PPIs without completing the required know your customer (KYC) checks
Full-KYC PPIs carry higher transaction and balance limits compared to minimum-detail PPIs, making KYC compliance a critical regulatory requirement to prevent fraud and money laundering
The RBI has imposed a penalty of ₹3.1 Lakh on fintech major Pine Labs for failing to comply with guidelines related to prepaid payment instruments (PPIs).
The central bank, in a statement, said it found Pine Labs in violation of PPI norms by issuing full-KYC PPIs without completing the required know your customer (KYC) checks.
The penalty order came after the RBI carried out inspection of the company’s operations between July 2024 and May 2025.
Full-KYC PPIs carry higher transaction and balance limits compared to minimum-detail PPIs, making KYC compliance a critical regulatory requirement to prevent fraud and money laundering.
Following the inspection, the central bank issued a show-cause notice to the company. “After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, the RBI found that the charge against the company of issuing several full-KYC PPIs without completing KYC of the PPI holders was sustained, warranting imposition of monetary penalty,” the statement added.
Acknowledging the RBI’s penalty, Pine Labs said in an exchange filing that it would have ‘no material impact on its financials, operations, or other activities’.
Meanwhile, the fintech major also informed stock exchanges that its wholly owned subsidiary Mopay Services Pvt Ltd (MSPL) has decided to voluntarily initiate the process to strike-off its name from the RoC.
“MSPL is not carrying on any business operations and has no activity. Accordingly, the company has decided to initiate the process of striking off its name to streamline the group structure and reduce administrative and compliance overheads,” it said.
The process is expected to take two to three months, subject to regulatory approval, after which MSPL will stand dissolved and cease to be a subsidiary of Pine Labs.
On the financial front, the full-stack fintech company, with verticals spanning payments, loyalty and rewards, API banking, merchant software, and more, reported a second consecutive profitable quarter in Q3 FY26. It posted a net profit of ₹42.4 Cr compared to a loss of ₹56.7 Cr in Q3 FY25.
Its operating revenue jumped 24% YoY to ₹744.3 Cr, while EBITDA increased 237% to ₹155 Cr in the December quarter of 2025.
Shares of Pine Labs ended yesterday’s trading session 1.7% lower at ₹161.5 on the BSE. The company made its public market debut in November last year, listing 9.5% above the issue price at ₹242 apiece on the BSE and the NSE.
