Pine Labs Limited has been penalized by the Reserve Bank of India with a monetary fine of ₹3,10,000 for violations related to Prepaid Payment Instruments (PPI) Know Your Customer (KYC) procedures. The company disclosed this development to stock exchanges on March 27, 2026, pursuant to regulatory disclosure requirements under SEBI regulations.

RBI Penalty Details

The Reserve Bank of India issued the penalty order dated March 23, 2026, which was received by Pine Labs on March 27, 2026. The monetary penalty has been imposed under Section 30(1) read with Section 26(6) of the Payment and Settlement Systems Act, 2007.

Nature of Violations

The penalty stems from supervisory findings under RBI directions on issuance of Prepaid Payment Instruments. The central bank discovered that Pine Labs had issued certain Full-KYC Prepaid Payment Instruments without completing the mandatory Know Your Customer verification of the respective PPI holders. This violation relates to the company's compliance with KYC norms for prepaid payment instruments, which are critical for maintaining financial system integrity and preventing money laundering.

Company's Response and Impact Assessment

Pine Labs has formally communicated the penalty details to both BSE Limited and National Stock Exchange of India Limited as required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has assessed the financial and operational impact of this regulatory action.

Regulatory Compliance

The disclosure was made by Company Secretary and Compliance Officer Neerav Mehta, who signed the intimation letter digitally on March 27, 2026. The company has also made this information available on its investor relations website at pinelabs.com/investor-relations, ensuring transparency with stakeholders and compliance with disclosure norms.

Pine Labs Limited has announced the commencement of voluntary strike-off proceedings for its wholly owned subsidiary, Mopay Services Private Limited (MSPL). The decision was approved by MSPL's shareholders at their meeting held on March 27, 2026, as part of the company's efforts to streamline its group structure and reduce administrative and compliance overheads.

Subsidiary Performance and Rationale

MSPL is currently not carrying on any business operations and does not have any activity. The subsidiary's financial contribution to the parent company has been minimal, as detailed in the regulatory filing.

Given the inactive status and negligible financial contribution, Pine Labs has decided to initiate the strike-off process to optimize its corporate structure and reduce unnecessary compliance burdens.

Strike-Off Process and Timeline

MSPL will make an application with the Registrar of Companies under Section 248 of the Companies Act, 2013, for removal of its name from the Register of Companies. The process is expected to take 2 to 3 months, subject to approval from the relevant authorities.

Upon completion of the necessary formalities and subject to approval of the Registrar of Companies, MSPL will stand dissolved and will consequently cease to be a subsidiary of Pine Labs Limited.

Impact Assessment

Pine Labs has confirmed that the proposed strike-off will not have any material impact on the company's financial position or operations. This assessment is supported by the subsidiary's inactive status and minimal financial contribution to the group.

Regulatory Compliance

The intimation has been made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pine Labs has provided comprehensive details as required under the regulatory framework, ensuring full transparency with stakeholders and regulatory authorities.

The company has also made the information available on its investor relations website, maintaining its commitment to transparent communication with investors and other stakeholders.