Edited By: Mohammad Haris
Last Updated: March 03, 2023, 17:52 IST
Amazon Pay was non-compliant with the instructions issued by RBI on KYC necessities.
The RBI’s penalty on Amazon Pay India has been imposed in train of powers vested in RBI below Section 30 of the Payment and Settlement Systems Act, 2007
The Reserve Bank of India (RBI) has imposed a penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited as the corporate was non-compliant with sure guidelines associated to pay as you go fee devices (PPIs) and Know Your Customer (KYC).
“The Reserve Bank of India (RBI) has imposed financial penalty of Rs 3,06,66,000 on Amazon Pay (India) Private Limited (the entity) for non-compliance with sure provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as up to date every now and then) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as up to date every now and then),” 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,” in response to the discharge.
It mentioned the penalty has been imposed in train of powers vested in RBI below Section 30 of the Payment and Settlement Systems Act, 2007. This motion relies on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the entity with its prospects.
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