RBI imposes penalty on Amazon Pay (India)
It has been directed to pay Rs.3.06 crores
RBI imposes penalty on Amazon Pay (India)
It has been directed to pay Rs.3.06 crores
The Reserve Bank of India (RBI) has imposed a penalty of over Rs.3.06 crores on Amazon Pay (India) Private Limited, the digital payment arm of e-commerce giant Amazon, for non-compliance with certain provisions related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) directions.
The RBI release stated, “The Reserve Bank of India has imposed a monetary penalty of Rs.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),”
The RBI statement further read, "It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements.”
The regulatory body had issued a notice to Amazon Pay advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions.
After considering the entity’s response, the RBI said, “The charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.”
However, the central bank added the penalty was based on deficiencies in regulatory compliance and not to pronounce upon the validity of any transaction or agreement entered into by Amazon Pay with its customers.
It further said that the charges were imposed under Section 30 of the Payment and Settlement Systems Act, 2007.