The Reserve Bank of India (RBI) has fined Cashfree Payments, a prominent fintech company, ₹3.1 Lakh for failing to adhere to payment aggregator regulations. This penalty was a result of RBI’s inspection into Cashfree’s operations from April 2024 to June 2025, where discrepancies in compliance with payment aggregator and payment gateway guidelines were identified.
Following the inspection, the RBI issued a show cause notice to Cashfree, prompting the company to justify its actions. Subsequently, the central bank determined that Cashfree had made unauthorized debits from its escrow account, contravening regulatory norms. As a consequence, the RBI levied the monetary penalty on Cashfree on March 9.
Cashfree, founded in 2015 by Akash Sinha and Reeju Datta, specializes in digital payment solutions such as payment gateway services, payout solutions, and banking APIs. The company serves a diverse clientele, including MakeMyTrip, Zomato, and CRED, and has processed transactions totaling $80 billion annually, claiming to have served over a million businesses since its inception.
Source: Inc42 Media