Edited by: Muhammad Harris
Last updated: March 03, 2023, 5:53 PM IST
Amazon Pay failed to meet RBI’s guidance on KYC requirements.
The RBI fine imposed on Amazon Pay India in the exercise of powers conferred on RBI under section 30 of the Payment and Settlement Systems Act, 2007
The Reserve Bank of India (RBI) has imposed a fine of Rs 3.06 crore on Amazon Pay (India) Private Limited for failing to comply with certain rules regarding prepaid payment instruments (PPIs) and Know Your Customer (KYC). Amazon Pay is the digital payments arm of e-commerce giant Amazon.
“The Reserve Bank of India (RBI) has imposed a fine 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 the Amazon Pay India entity failed to comply with RBI’s guidance on KYC requirements. Accordingly, Amazon Pay was sent a notice advising them to demonstrate why there should be no penalty for non-compliance.
“After considering the entity’s response, the RBI concluded that the above allegation of non-compliance with RBI instructions was well founded and warranted the imposition of a monetary fine,” the release said.
It said the fine was imposed in the exercise of powers granted to RBI under section 30 of the Payment and Settlement Systems Act, 2007. This action is based on regulatory compliance deficiencies and is not intended to make any statement about the validity of any transaction or agreement. entered into by the entity with its customers.
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