RBI has imposed a penalty of 306.66 lacs rupees on ‘Amazon Pay’ for non-compliance with its directions on KYC norms.
The Reserve Bank of India (RBI) has imposed a monetary penalty of 306.66 lacs rupees on ‘Amazon Pay (India) Private Limited’ for failing to comply with the norms under the Master Directions on ‘Prepaid Payment Instruments’ and ‘Know Your Customer.’
The RBI has punished “Amazon Pay,” an online payment service, for violating Section 30 of the Payment and Settlement Systems Act, 2007. The RBI took this action due to regulatory compliance deficiencies noticed in the conduct of business by ‘Amazon Pay’. RBI has no intention to make any decision regarding the legality of any transaction or agreement that ‘Amazon Pay’ has entered into with its customers.
According to the RBI’s findings, “Amazon Pay” did not follow the instructions regarding the KYC norms. As a result, the RBI issued a notice to “Amazon Pay,” asking the company to reply with reasons as to why a penalty should not be imposed for noncompliance with such directions.
After considering the response provided by “Amazon Pay,” the RBI has concluded that the allegations of non-compliance have been proven, necessitating the imposition of a monetary penalty of 306.66 lac rupees to conclude the investigation.