RBI Penalises Appnit Technologies Over KYC Lapses and PPI Compliance Failures:

The RBI imposes a Rs 5.80 lakh penalty on Appnit Technologies Private Limited for violating KYC and prepaid payment instrument norms.

Company Fined for KYC, PPI Norm Violations

Saloni Kumari

May 16, 2026

Last update on May 16, 2026

RBI Penalises Appnit Technologies Over KYC Lapses and PPI Compliance Failures The Reserve Bank of India (RBI) has levied a monetary penalty of Rs 5.80 lakh on Appnit Technologies Private Limited for non-compliance with certain instructions related to ‘Know Your Customer (KYC)’ and ‘Prepaid Payment Instruments (PPI)’, issued by it. The RBI has taken this action in exercise of its powers granted under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007, through an Order dated May 11, 2026. The RBI had conducted a statutory inspection of the company’s operations for the period from April 2024 to August 2025. The probe concluded that the company had not complied with some of the RBI’s instructions. As a result, a show-cause notice (SCN) was issued to the company, asking it to explain why the proposed penalty should not be imposed on it for failure to comply with the RBI's directions. Thereafter, the company furnished a detailed reply to the notice and other documents. However, the RBI, after reviewing the company's response, held that the company was fairly liable for the proposed penalty because it had allowed PPI (Prepaid Payment Instrument) accounts opened through Aadhaar OTP-based e-KYC to remain active for more than one year without completing the full KYC verification required under RBI rules. Further, it did not have a proper system to regularly review and update the risk level of customer accounts. Consequently, the bank confirmed the proposed penalty of Rs 5.80 lakh on the company.

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].