Policy · Financial Services

RBI fines Cashfree for escrow violations

By Startup Enthusiast · 16 March 2026

What they do

Cashfree Payments provides digital payment solutions like gateways and APIs to businesses

The RBI imposed a ₹3.1 lakh penalty for impermissible debits from an escrow account

This fine highlights the regulator's intensified compliance clampdown on fintech companies

The RBI imposed a ₹3.1 lakh penalty on Cashfree Payments for regulatory violations.
The violation involved an impermissible debit from an escrow account held by the company.
The order was issued on March 9, 2026, following a statutory inspection.
The inspection period covered activities from April 2024 to June 2025.
The action was taken under Section 30(1) of the Payment and Settlement Systems Act.
The RBI stated the action addressed compliance deficiencies, not transaction validity.
Cashfree had previously replied to the notice before charges were sustained.
The penalty is part of a broader regulatory push against fintech non-compliance.

The RBI has intensified its clampdown on errant fintech firms recently.
Paytm was fined ₹18.8 Lakh last month for a similar breach.
Regulators have tightened norms affecting firms like Groww and Angel One.
Banks were directed to stop co-branded cards with OneCard in December.

Cashfree operates as a payment aggregator offering digital payment solutions.
Its products include payment gateways, payout solutions, and banking APIs.
The company serves over 1 Mn businesses since its inception in 2015.
It processes an annual transaction volume of approximately $80 Bn.
Key clients include MakeMyTrip, Zomato, CRED, and Delhivery.
FY25 operating revenue was INR 640 Cr, slightly down from FY24.
FY25 net loss increased by 14% to INR 154.1 Cr.
The company reported a net loss of INR 135 Cr in FY24.

Product: Digital payment solutions including payment gateway, cross-border payments, payout solutions, and banking APIs.
Customers: Businesses and merchants, including enterprise and SMB customers.
How it makes money: Charges fees on payment processing and related financial infrastructure services.
What sets it apart: Offers a broad payments stack plus cross-border capabilities across many countries.
Operations: Processes payments at scale for merchants across India and international markets.