RBI imposes Rs 21 lakh penalty on PhonePe for non-compliance with PPI rules

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 21 lakh on Walmart-owned digital payments firm PhonePe for non-compliance with certain regulatory provisions governing prepaid payment instruments (PPIs).

The penalty, announced through an order dated September 10, follows a statutory inspection of PhonePe’s operations for the period between October 2023 and December 2024. The penalty was imposed under provisions of the Payment and Settlement Systems Act, 2007, according to a press release on Friday.