Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.80 lakh on Appnit Technologies Private Limited for non-compliance with directions related to Know Your Customer (KYC) norms and Prepaid Payment Instruments (PPI).

The penalty was imposed through an order dated May 11, 2026, under the provisions of the Payment and Settlement Systems Act, 2007.

According to RBI, the statutory inspection of the company covered operations from April 2024 to August 2025. Following supervisory findings and related correspondence, the central bank issued a show-cause notice to the company seeking an explanation for the regulatory lapses.

After reviewing the company’s response and additional submissions, RBI found that Appnit Technologies had allowed PPI accounts opened through Aadhaar OTP-based e-KYC to continue beyond one year without carrying out full customer identification as required under KYC norms.

The company was also found to have failed in establishing a system for periodic review of risk categorisation of customer accounts.

RBI clarified that the penalty is based on deficiencies in statutory and regulatory compliance and does not affect the validity of transactions or agreements entered into by the company with its customers.