Amid heightened scrutiny of regulatory compliance in India's digital payments sector, the Reserve Bank of India has imposed a monetary penalty of ₹9 lakh on One Mobikwik Systems Limited. The action relates to violations of directives concerning prepaid payment instruments and fraud reporting, and does not constitute a ruling on the validity of the company's transactions with its customers.
Highlights
- RBI fines One Mobikwik Systems ₹9 lakh for violating the Payment and Settlement Systems Act.
- The inspection found that the company allowed PPI holders to make transfers above the prescribed limit and was late in reporting some fraud cases.
- RBI reiterated the expectation of strict compliance by fintech companies with regulatory reporting, beneficiary registration and fraud reporting requirements.
This article was translated from the original. Read the original version by our correspondent here.
Inspection, notice and grounds for the violations
According to a press release dated 6 November 2026 from the Reserve Bank of India (Reserve Bank of India), the penalty was imposed under the powers conferred by Sections 30(1) and 26(6) of the Payment and Settlement Systems Act, 2007. The central bank conducted a statutory inspection of the company's operations covering the period from June 2025 to March 2026.After the inspection identified regulatory compliance gaps, the company was issued a show-cause notice. The RBI found the allegations to be substantiated after considering the company's written response, additional submissions and oral arguments presented during a personal hearing.
According to the central bank, the company allowed some PPI holders to transfer amounts above the prescribed limit to beneficiaries who had not been pre-registered. In addition, the company failed to report some fraud cases within the prescribed timeframe.
Compliance implications for the fintech sector
This action highlights that as payments and fintech businesses expand in India, strict compliance with regulatory reporting and transaction controls is expected. Processes such as beneficiary registration, transfer limits and fraud reporting remain key areas of supervisory scrutiny for PPI issuers.The RBI has clarified that the penalty was imposed solely on the basis of regulatory compliance gaps. The fine also does not preclude any other action that the central bank may initiate against the company in the future.
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