RBI fines Pine Labs ₹3.1 lakh for KYC lapses amid record growth
The Reserve Bank of India (RBI) has fined Pine Labs Rs 3.1 lakh for failing to complete mandatory KYC checks before issuing prepaid payment instruments. The penalty follows an inspection that found violations of the Payment and Settlement Systems Act, 2007. Meanwhile, the fintech firm reported strong financial growth in its latest quarterly results. The RBI's inspection of Pine Labs took place between July 2024 and May 2025. Regulators discovered that the company had issued full-KYC prepaid payment instruments without completing the required identity verification. After reviewing the findings, the RBI upheld the charge and imposed the penalty under existing payment regulations.
Despite the fine, Pine Labs stated that the amount would not affect its financial health, operations, or business activities. The company's third-quarter results for 2025-26 showed a 24% year-on-year rise in operating revenue, reaching Rs 744 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also climbed to Rs 171 crore, while net profit stood at Rs 42 crore.
Over the past two years, Pine Labs has expanded its presence in India's payments sector. It secured long-term contracts with major oil marketing companies to modernise digital payments and saw transaction volumes triple after obtaining an account aggregator licence. The firm now leads the enterprise market with 1.7 million POS devices and aims to increase its EBITDA margin from 20% in FY26 to 27% by FY28.
Beyond India, the company has focused on global growth, with international revenue rising 58% between 2023 and 2025 to account for 15% of total earnings. By April 2026, it plans to launch stablecoin-backed cards in nine countries. Pine Labs is also preparing for an initial public offering (IPO) at an estimated valuation of $2.9 billion.
In a separate move, Pine Labs' subsidiary, Mopay Services Pvt Ltd, has begun the process of striking its name from the Registrar of Companies. The RBI's penalty highlights regulatory scrutiny over KYC compliance in the payments industry. Pine Labs, however, continues to report strong financial performance and strategic expansion. The company's growth in revenue, profit, and global operations remains unaffected by the fine.
