CA Sansaar
RBI Imposes ₹3.1 Lakh Penalty on Cash free for Regulatory Lapses
Print
The Reserve Bank of India (RBI) has levied a monetary penalty of ₹3.1 lakh on Cashfree Payments India Private Limited for failing to adhere to certain regulatory requirements.
According to the central bank, the company was found to have carried out transactions involving “impermissible debits” from an escrow account, which is not permitted under existing guidelines. The penalty was imposed through an order dated March 9.
The action follows a statutory inspection conducted by the RBI covering the period from April 2024 to June 2025. After identifying the irregularities, the regulator issued a notice to the company. The penalty was finalized after reviewing the company’s response and confirming the violations.
RBI clarified that the penalty is strictly related to shortcomings in compliance with regulatory norms and does not question the legitimacy of any transactions or agreements between the company and its customers.
The non-compliance pertains to RBI’s “Guidelines on Regulation of Payment Aggregators and Payment Gateways.” The penalty has been imposed under the powers granted to the RBI under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.
According to the central bank, the company was found to have carried out transactions involving “impermissible debits” from an escrow account, which is not permitted under existing guidelines. The penalty was imposed through an order dated March 9.
The action follows a statutory inspection conducted by the RBI covering the period from April 2024 to June 2025. After identifying the irregularities, the regulator issued a notice to the company. The penalty was finalized after reviewing the company’s response and confirming the violations.
RBI clarified that the penalty is strictly related to shortcomings in compliance with regulatory norms and does not question the legitimacy of any transactions or agreements between the company and its customers.
The non-compliance pertains to RBI’s “Guidelines on Regulation of Payment Aggregators and Payment Gateways.” The penalty has been imposed under the powers granted to the RBI under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.
Category : RBI | Comments : 0 | Hits : 33
Comments