RBI fines Amazon Pay: Why RBI has imposed Rs 3.06 crore penalty on Amazon Pay India | – Times of India
The Reserve Bank of India has imposed a penalty of over Rs 3.06 crore on Amazon Pay (India) Private Limited. The fine has been imposed for non-compliance with certain provisions related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) direction. “The Reserve Bank of India (RBI) has imposed 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),” RBI said in a statement. Amazon Pay is the digital payment arm of e-commerce giant Amazon.
Why the penalty
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. “The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007,” said RBI in the statement.
“It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions,” RBI further said.
The RBI statement, however, made it clear that 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 Amazon with its customers.
Why the penalty
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. “The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007,” said RBI in the statement.
“It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions,” RBI further said.
The RBI statement, however, made it clear that 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 Amazon with its customers.
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