RBI imposes ₹ 3.06 crore penalty on Amazon Pay for non-compliance with KYC and PPI rules
The Reserve Bank of India (RBI) has slapped Amazon Pay (India) with a monetary penalty of INR 3.06 crore for failing to comply with the guidelines on prepaid payment instruments (PPIs) and Know Your Customer (KYC) norms. The penalty has been imposed under Section 30 of the Payment and Settlement Systems Act, 2007.
As per RBI’s statement, Amazon Pay (India) was found to be non-compliant with the directions issued by RBI on KYC requirements. The company was issued a notice to show cause as to why a penalty should not be imposed for the same. However, after considering the entity’s response, RBI concluded that non-compliance charges were substantiated and therefore warranted the imposition of a monetary penalty.
It is important to note that the penalty is based on deficiencies in regulatory compliance and is not intended to cast doubt on the validity of any transaction or agreement between Amazon Pay and its customers.
Amazon Pay is an online payments processing service that is owned by Amazon.com Inc. The penalty has been imposed on the entity for not adhering to certain provisions of the Master Directions on PPIs, dated August 27, 2021, and the Master Direction – KYC Direction, 2016, dated February 25, 2016.
This news comes as a setback for Amazon Pay, which has been focusing on increasing its user base in India. The company has not yet issued a statement on the matter.
For More Latest News Click Here
