RBI fines PhonePe Rs 21 lakh: What the central bank’s notice said
The Reserve Bank of India (RBI) has imposed a fine of Rs 21 lakh on PhonePe for not complying with the rules of prepaid payment instruments (PPIs). A PPI is a prepaid instrument where bank customers load funds first and spend from that balance instead of directly accessing their bank account. The penalty, which was issued recently, follows a statutory inspection of the Walmart-owned digital payments firm’s operations from October 2023 to December 2024.
According to the RBI, PhonePe’s end-of-day balance in its escrow account on some days was lower than the value of outstanding PPIs and payments owed to merchants.
