RBI slaps Amazon Pay (India) with ₹3.06 crore penalty for norm violation
The central bank has imposed penalty for non-compliance of the Prepaid Payment Instruments and KYC directions
PremiumThe Reserve Bank of India (RBI) on Friday said it has imposed a penalty of ₹3.06 crore on Amazon Pay (India) Private Limited, on charges of not complying with certain norms of the Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) direction.
“The Reserve Bank of India (RBI) has imposed monetary penalty of ₹3,06,66,000/- (Rupees three crore six lakh sixty six thousand only) on Amazon Pay (India) Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as updated from time to time) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time)," said RBI in its release.
The central bank said that Amazon Pay was ‘non-compliant’ with the directions issued by RBI on KYC requirements.
“Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions," said RBI in its notice.
RBI said that after considering the response from Amazon Pay on charge of non-compliance with RBI directions it imposed monetary penalty.
The central bank said that the charges were imposed under Section 30 of the Payment and Settlement Systems Act, 2007.
The central bank, however, added the penalty is based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the Amazon Pay (India) with its customers.
Amazon Pay is the digital payment arm of e-commerce giant Amazon.
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