The Reserve Bank of India has imposed a monetary penalty of ₹3.10 lakh on Pine Labs Limited for non-compliance with regulatory requirements linked to prepaid payment instruments (PPIs).
The order was dated March 23, 2026, and was received by the company on March 27, 2026. The disclosure was made to stock exchanges in line with SEBI’s listing regulations.
The penalty relates to lapses identified during supervisory assessment. Pine Labs was found to have issued certain full-KYC prepaid payment instruments without completing the required Know Your Customer (KYC) verification of customers.
These instruments require full customer verification before issuance. The absence of completed KYC checks indicates a breach of regulatory instructions governing prepaid payment instruments issued by regulated entities.
The action has been taken under Section 30(1), read with Section 26(6), of the Payment and Settlement Systems Act, 2007. These provisions allow the central bank to impose penalties for non-compliance with operational and regulatory requirements.
The RBI’s directions on PPIs require strict adherence to customer identification norms. These are intended to ensure traceability of transactions and reduce the risk of misuse within payment systems.
Pine Labs stated in its filing that the penalty does not have any material impact on its financial position, operations, or other business activities.
The company also noted that the information has been made available through its investor relations platform, in accordance with disclosure norms under SEBI regulations.
Read More: Pine Labs to Roll Out Stablecoin Backed Prepaid Card says CEO!
As of March 30, 2026, 11:33 am, Pine Labs Ltd share price was trading at ₹153.95, down 4.60% from the previous closing price.
The development follows routine supervisory action by the RBI in relation to compliance gaps in payment systems. While the monetary impact remains limited, the case shows enforcement of KYC requirements in the prepaid instruments segment.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 30, 2026, 2:53 PM IST
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