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Synopsis: The Reserve Bank of India has imposed a monetary penalty of Rs 9 lakh on One Mobikwik Systems Limited. The action follows non-compliance with directions regarding Prepaid Payment Instruments and fraud reporting timelines.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 9 lakh on One Mobikwik Systems Limited by an order dated 6 November 2026. The action was taken due to non-compliance with specific regulatory directions related to Prepaid Payment Instruments (PPIs) and fraud reporting.
Why did RBI impose a penalty on One Mobikwik Systems?
The regulator conducted a statutory inspection of One Mobikwik Systems Limited covering its business operations from June 2025 to March 2026. Following the supervisory findings, the central bank issued a show‑cause notice to the company regarding its non‑compliance with regulatory standards.
After reviewing the company's written response, additional submissions, and arguments presented during a personal hearing, the RBI sustained two main charges against the payment firm.
- Allowing fund transfers by certain PPI holders to non‑pre‑registered beneficiaries beyond the mandated limit.
- Failing to report specific fraud instances within the timeline prescribed by the regulator.
What is the legal basis of the central bank's action?
The penalty was invoked by the RBI using powers granted under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.
The central bank stated that this enforcement action addresses specific deficiencies in regulatory compliance. It does not affect the validity of any transactions or agreements made between the company and its customers, and is without prejudice to any further action the RBI may initiate.
Company response and next steps
The firm issued a brief statement acknowledging the RBI’s findings and confirming its commitment to rectify the highlighted gaps. It said that corrective measures have already been initiated, including tightening internal controls over PPI transactions and enhancing its fraud monitoring mechanisms. The company also indicated that it will cooperate fully with the regulator to ensure full compliance moving forward.
- Review and update internal policies related to PPI beneficiary limits
- Implement faster fraud detection and reporting workflows
- Engage external auditors to verify compliance with RBI directives
What it means for you
For fintech users and market participants, the action highlights the central bank's continuous focus on strict adherence to fraud reporting timelines and wallet transfer limits, ensuring secure digital transaction ecosystems.
Frequently asked questions
What is the total penalty amount imposed on MobiKwik?
The Reserve Bank of India imposed a monetary penalty of Rs 9 lakh on One Mobikwik Systems Limited.
What were the main reasons for the RBI penalty?
The key reasons included exceeding limits on PPI fund transfers to non-pre-registered beneficiaries and failing to report frauds within the prescribed period.
Does this RBI order affect existing MobiKwik customer transactions?
No, the RBI clarified that the order focuses strictly on regulatory compliance deficiencies and does not invalidate any existing transactions or customer agreements.
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Sources: RBI press releases. Written by the ICC BizNews Desk on 15 November 2026. Read our editorial policy or report a correction. This article is for information only and is not investment advice.
