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:

1. 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

2. 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