New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited for non-compliance with certain norms.
According to the statement by the RBI on Friday, it said the US e-commerce giant was penalised for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016.
According to the release by the central bank, the penalty has been imposed in exercise of powers vested in the RBI under Section 30 of the Payment and Settlement Systems Act, 2007.
This 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.
The RBI has observed that Amazon Pay was non-compliant with the directions issued by central banking regulator 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.
After considering the entity’s response, RBI concluded that the aforesaid charge of non-compliance with the RBI directions was substantiated and warranted imposition of monetary penalty.
