meta_id 3159044

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.