The RBI will fine Amazon Pay India more than Rs. 3.06 billion for noncompliance
The Reserve Bank of India on Friday said it has imposed a penalty of over Rs. 3.06 crore on Amazon Pay (India) Private Limited for non-compliance with certain provisions related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) direction. "It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements," the RBI...
The Reserve Bank of India announced on Friday that it had fined Amazon Pay (India) Private Limited more than Rs. 3.06 crore for failing to follow certain rules on prepaid payment instruments (PPIs) and the Know Your Customer (KYC) directive.
"It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements," the RBI said in a statement.
The RBI had issued a notice to Amazon Pay (India) 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, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty," it said.
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.
According to a statement from the central bank, the 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.
Amazon Pay is the digital payment arm of e-commerce giant Amazon.
The RBI statement said the penalty has been imposed in the exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007.
An Amazon spokesperson said the company remains committed to operating as per regulatory guidelines and maintaining compliance.
"We continue to work closely with the authorities to share our commitment with them," the spokesperson said.