The Reserve Bank of India (RBI) has imposed a penalty of ₹3.1 Lakh on Pine Labs, a prominent fintech company, for non-compliance with guidelines concerning prepaid payment instruments (PPIs).
According to the RBI, Pine Labs violated PPI regulations by issuing full-KYC PPIs without completing the necessary know your customer (KYC) processes.
This penalty follows an inspection of the company's operations conducted by the RBI from July 2024 to May 2025.
Full-KYC PPIs allow for higher transaction and balance limits compared to minimum-detail PPIs, making KYC compliance essential to mitigate risks of fraud and money laundering.
After the inspection, the RBI issued a show-cause notice to Pine Labs. The central bank stated, “After reviewing the company's response to the notice, along with additional submissions and oral arguments during the hearing, the RBI concluded that the allegations of issuing multiple full-KYC PPIs without proper KYC checks were substantiated, justifying the monetary penalty.”
Pine Labs acknowledged the penalty in a filing, asserting that it would not significantly affect its financial status, operations, or activities.
In a related development, Pine Labs announced that its subsidiary, Mopay Services Pvt Ltd (MSPL), plans to voluntarily initiate the process to strike off its name from the Registrar of Companies (RoC). The company stated that MSPL is not currently engaged in any business operations.
The strike-off process, aimed at streamlining the group structure and reducing administrative burdens, is expected to take two to three months, pending regulatory approval.
Financially, Pine Labs reported a net profit of ₹42.4 Crore for the third quarter of FY26, marking its second consecutive profitable quarter, compared to a loss of ₹56.7 Crore in the same period last year. Operating revenue increased by 24% year-on-year to ₹744.3 Crore, while EBITDA surged by 237% to ₹155 Crore in the December quarter of 2025.
In the stock market, Pine Labs shares closed 1.7% lower at ₹161.5 on the BSE. The company made its public debut in November last year, listing at ₹242 per share, which was 9.5% above the issue price.
