The Reserve Financial institution of India has imposed a financial penalty of Rs 3.1 lakh on Pine Labs for failing to adjust to guidelines governing pay as you go cost devices (PPIs).

In an order dated 23 March 2026, RBI stated the penalty was levied below provisions of the Cost and Settlement Techniques Act, 2007. The corporate stated it obtained the order on 27 March.

The regulator discovered that Pine Labs had issued sure full-KYC pay as you go cost devices with out finishing necessary “know your buyer” checks for the holders. Full-KYC PPIs permit larger transaction and steadiness limits than minimum-detail devices, making compliance with id verification guidelines a key safeguard towards fraud and cash laundering.

The motion follows an inspection of the corporate’s operations carried out between July 2024 and Might 2025. After the overview, the central financial institution issued a show-cause discover.

“After contemplating the corporate’s reply to the discover, further submissions made by it and oral submissions made throughout the private listening to, the RBI discovered that the cost… was sustained, warranting imposition of financial penalty,” the central financial institution stated in a press release.

Pine Labs stated in a regulatory submitting that the penalty would have “no materials impression on its financials, operations, or different actions”.

Individually, the corporate stated its wholly owned subsidiary, Mopay Companies Pvt Ltd, has begun a voluntary course of to strike off its title from the Registrar of Corporations. The unit isn’t conducting any enterprise exercise, and the transfer is meant to streamline the group construction and scale back compliance overheads. The method is predicted to take two to a few months, topic to regulatory approvals.

The event comes as Pine Labs reviews bettering monetary efficiency. The corporate posted a web revenue of Rs 42 crore within the third quarter of the 2025–26 monetary yr, in contrast with a lack of Rs 57 crore a yr earlier. Working income rose 24% year-on-year to Rs 744 crore, whereas earnings earlier than curiosity, tax, depreciation and amortisation elevated sharply to Rs 171 crore.