New Delhi, Sept. 15 -- PhonePe Limited has been fined 21 lakh by the Reserve Bank of India (RBI) due to failure to comply with directives on Prepaid Payment Instruments (PPIs). The fine is after a statutory examination of the operations of the Walmart-owned payments company with regard to the operations between October 2023 and December 2024.

According to the RBI's findings, PhonePe's end-of-day balance in its escrow account on certain days was lower than the value of outstanding PPIs and payments due to merchants. The regulator said the company did not report those shortfalls to the central bank immediately, a reporting lapse that formed the basis for the penalty" After considering the company's reply to the notice, additional submissio...