RBI imposes Rs 3.1 lakh penalty on Cashfree
18 Mar 2026, 06:13 PMThe fine was issued under the provisions of section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007.
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The Reserve Bank of India (RBI) has imposed a penalty of Rs 3.1 lakh on Cashfree Payments India Pvt Ltd for not complying with certain directions issued by the monetary regulator for payment aggregators (PA).
The fine was issued under the provisions of section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007, the central bank's official statement said.
The regulator said that it had conducted a statutory inspection for the company with reference to its operations for the period from April 2024 to June 2025.
A notice was issued to the company for failing to comply with certain provisions of RBI directions, and inviting it to show cause as to why a penalty should not be issued for non-compliance. The penalty was issued after taking into account the company's reply to the notice, along with other submissions made by it.
The RBI's order dated March 9 charged the fintech platform with non-compliance for making 'certain impermissible debit' from an escrow account.
"This action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers," the RBI said.
Last month, the RBI imposed a compounding fee of Rs 18.76 lakh on Paytm over Foreign Exchange Management Act (FEMA) violations.
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