Amazon Pay India faces penalty of over Rs. 3.06 Crore by RBI for non-compliance

The Reserve Bank of India announced on Friday that it imposed a fine of more rupees. 3.06 crore on Amazon Pay (India) Private Limited for failing to comply with certain provisions relating to Prepaid Payment Instruments (PPI) and Know Your Customer (KYC) direction.

“The entity has been observed to be non-compliant with instructions 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 justify why a penalty should not be imposed for failure to follow the instructions.

“After reviewing the entity’s response, RBI has concluded that the above-noted allegation of non-compliance with RBI’s instructions is well-founded and warrants the imposition of a monetary penalty,” it said.

The central bank added, however, that the sanction is based on shortcomings in regulatory compliance and is not intended to rule on the validity of any transaction or agreement Amazon Pay (India) has entered into with its customers. .

According to a statement from the central bank, the action is based on shortcomings in regulatory compliance and is not intended to rule on the validity of any transaction or agreement the entity has entered into with its customers. .

Amazon Pay is the digital payment arm of e-commerce giant Amazon.

RBI’s statement says the sanction was imposed in the exercise of the powers granted to RBI under Section 30 of the Payments and Settlement Systems Act 2007.

An Amazon spokesperson said the company remains committed to operating within regulatory guidelines and maintaining compliance.

“We continue to work closely with the authorities to share our commitment with them,” the spokesperson said.