RBI Imposes Rs 3.06 Crore Fine On Amazon Pay For Non-Compliance With KYC Requirements

The Reserve Bank of India (RBI) has imposed a penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited as the company was non-compliant with certain rules related to prepaid payment instruments (PPIs) and Know Your Customer (KYC). Amazon Pay is the digital payment arm of e-commerce giant Amazon.

“The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 3,06,66,000 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),” the RBI said in a release on Friday.

The RBI said Amazon Pay India entity was non-compliant with the directions issued by RBI on KYC requirements. Accordingly, a notice was issued to Amazon Pay advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

“After considering the entity’s response, the RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty,” according to the release.

It said the penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.

Read all the Latest Business News here