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Policy · Financial Services

RBI fines Pine Labs ₹3.1 lakh for KYC violations

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Pine Labs logo
Date
Company
Pine Labs
What it does
Merchant payment solutions provider
Kind
Policy
Amount
₹3.1 crore
Sector
Financial Services

What they do

Pine Labs provides payments and merchant software services

What happened

The RBI imposed a penalty for issuing prepaid instruments without proper checks

Why it matters

The company reported its second consecutive profitable quarter recently

The details

  • The RBI imposed a ₹3.1 Lakh monetary penalty on Pine Labs.
  • The violation involved issuing full-KYC prepaid payment instruments without required checks.
  • The inspection covered operations between July 2024 and May 2025.
  • The regulator sustained the charge after considering the company's reply and hearing.
  • Pine Labs stated the penalty has no material impact on financials or operations.
  • A subsidiary Mopay Services is voluntarily initiating strike-off from the RoC.
  • The strike-off aims to streamline group structure and reduce compliance overheads.
  • The process is expected to take two to three months for approval.

The bigger picture

  • The fine highlights strict regulatory enforcement on prepaid payment instrument guidelines.
  • It occurs shortly after the company's public market debut in November 2025.
  • The penalty amount is small relative to the company's recent revenue growth.

About the business

  • Pine Labs operates verticals including payments and loyalty rewards programs.
  • The company also provides API banking and merchant software solutions.
  • Q3 FY26 operating revenue jumped 24% year-on-year to ₹744.3 Cr.
  • EBITDA increased by 237% to ₹155 Cr in the same period.
  • Net profit turned positive at ₹42.4 Cr compared to a loss last year.
  • This marks the second consecutive profitable quarter for the firm.
  • Shares closed at ₹161.5 on the BSE recently.
  • The IPO listing price was ₹242 with a 9.5% gain initially.

What happens next

  • Mopay Services will complete its strike-off process within two to three months.

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