RBI penalises MobiKwik for PPI non-compliance, lapses in fraud reporting

The Reserve Bank of India (RBI) has imposed a penalty of Rs 9 lakh on Mobikwik for not complying with its directions on prepaid payment instruments (PPIs) and fraud reporting.

This penalty on One Mobikwik Systems Limited, by an order dated November 6, 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 central bank stated in its press release.

As per the RBI, MobiKwik allowed fund transfer by certain PPI holders to non-pre-registered beneficiaries beyond the prescribed limit; and also failed to report certain frauds within the prescribed timeline. 

The statutory inspection of the company was conducted by the RBI with reference to its operations for the period from June 2025 to March 2026. 

"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 penalty should not be imposed on it for its failure to comply with the said RBI directions.

After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charges against the company were sustained, warranting imposition of monetary penalty," the regulator added.