The Reserve Bank of India (RBI), through an order dated March 9, 2026, has imposed a monetary penalty of Rs 3.10 lakh on Cashfree Payments India Private Limited for non-compliance with its guidelines on the regulation of Payment Aggregators (PAs) and Payment Gateways (PGs). The penalty has been levied under the provisions of the Payment and Settlement Systems Act, 2007.

The action follows a statutory inspection conducted by the RBI covering the period from April 2024 to June 2025. Based on supervisory findings highlighting regulatory lapses, the central bank had issued a show-cause notice to the company.

After reviewing the company’s response and additional submissions, the RBI concluded that the firm had made certain impermissible debits from its escrow account, thereby justifying the penalty.

The RBI clarified that the penalty is based on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements entered into by the company with its customers. It also noted that further action may be taken if required.