RBI Penalizes Cashfree Payments for Non-Compliance

The Reserve Bank of India has imposed a penalty of Rs 3.1 lakh on Cashfree Payments India Private Ltd due to non-compliance with regulatory guidelines. The action follows a statutory inspection covering operations from April 2024 to June 2025, citing impermissible debits from an escrow account.

The Reserve Bank of India has enforced a Rs 3.1 lakh penalty on Cashfree Payments India Private Ltd for failing to comply with its directives. The central bank noted unauthorized debits from an escrow account, according to a released statement.

This regulatory action stems from a statutory inspection related to the company's operations, spanning April 2024 to June 2025, as detailed by the RBI.

The notice served to Cashfree earlier led to the financial penalty after sustained charges, highlighting deficiencies in regulatory compliance, though not questioning the validity of any customer transactions or agreements.

(With inputs from agencies.)