RBI Imposes Rs 3.1 Lakh Penalty on Cashfree for Regulatory Non-Compliance

The Reserve Bank of India (RBI) imposed a Rs 3.1 lakh penalty on Cashfree Payments India Private Ltd for non-compliance with its regulatory directions. The penalty, ordered on March 9, follows a statutory inspection covering April 2024 to June 2025, which found Cashfree made impermissible debits from an escrow account. RBI stated the action addresses statutory and regulatory deficiencies and does not comment on the validity of any transactions between Cashfree and its customers.