The RBI imposed a monetary penalty on Appnit Technologies, a prepaid payment instrument operator, for KYC and PPI non-compliance under the Payment and Settlement Systems Act, constituting a direct enforcement action against a payments institution.
The enforcement action specifically concerns non-compliance with prepaid payment instrument safeguarding and KYC procedures, making prepaid account management a secondary focus area.
Specialism
The RBI imposed a monetary penalty of ₹5.80 lakh on a payment instrument operator for KYC non-compliance, which is a clear enforcement action involving a financial penalty.
The non-compliance centers on KYC deficiencies and failure to conduct proper customer risk categorization reviews, which are core AML/CTF obligations for payment service providers.
2026-05-18 08:36:40·pthandapani@vixio.com
Meta Id
3159044
Content ID
3167526
GUID
b6266e2c1bad5ac3ab5707efa7935327
Press Releases - Reserve Bank of India
Pipeline Progress
🔄 Pipeline Journey
⏱
15s
total
✓
Queued08:36:25
+2s
✓
Metadata08:36:27
+0s
✓
S3 Content08:36:27
+3s
✓
Extracted08:36:30
+5s
✓
LLM Gen08:36:35
+5s
✓
Stored08:36:40
TITLE: India's Reserve Bank Imposes Monetary Penalty on Appnit Technologies for Know Your Customer Non-Compliance
BODY:
On May 15, 2026, the Reserve Bank of India (RBI) announced it had imposed a monetary penalty of ₹5.80 lakh on Appnit Technologies Private Limited for non-compliance with RBI directions on Know Your Customer (KYC) and Prepaid Payment Instruments (PPI). The RBI issued the penalty order on May 11, 2026, under powers conferred by section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007.
The RBI conducted a statutory inspection of Appnit Technologies covering its operations from April 2024 to August 2025. Following supervisory findings of non-compliance with RBI directions, the RBI issued a show cause notice to the company. After reviewing the company's response and additional submissions, the RBI sustained two primary charges: the company allowed PPI accounts opened using Aadhaar one-time password-based electronic KYC to remain open for more than one year without conducting identification as required under KYC directions, and it failed to establish a system for periodic review of risk categorisation of accounts. The penalty addresses deficiencies in statutory and regulatory compliance and does not pronounce on the validity of any transactions or agreements the company entered into with customers. The RBI noted the penalty is imposed without prejudice to any other enforcement action it may initiate against the company.
This enforcement action underscores the RBI's focus on ensuring payment system operators maintain robust KYC and account management procedures, particularly regarding digital identity verification methods and ongoing customer risk assessment protocols.
Press Releases - Reserve Bank of India Skip to main content Selected Selected Language हिंदी Search the Website Search Press Releases ( 342 kb ) Date : May 15, 2026 Reserve Bank of India imposes monetary penalty on Appnit Technologies Private Limited The Reserve Bank of India (RBI) has, by an order dated May 11, 2026, imposed a monetary penalty of ₹5.80 lakh (Rupees Five Lakh Eighty Thousand only) on Appnit Technologies Private Limited (the company) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’ and ‘Prepaid Payment Instruments (PPI)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007. The Statutory Inspection for the company was conducted by RBI with reference to its operations for the period from April 2024 to August 2025. Based on supervisory findings of non-compliance with the provisions of RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions of RBI directions. After considering the company’s reply to the notice and additional submissions made by it, RBI found that the following charges against the company were sustained, warranting imposition of monetary penalty: the company allowed PPI accounts, opened using Aadhaar OTP based e-KYC, to continue for more than one year without carrying out identification as per KYC Directions the company failed to put in place a system of periodic review of risk categorisation of accounts This action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the company. (Brij Raj) Chief General Manager Press Release: 2026-2027/268 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December 1990 All Months January February March April May June July August September October November December Top Back to previous page