On Friday, Reserve Bank of India (RBI) announced that Amazon Pay (India) Private Limited,Digital payment arm of Amazon is fined with more than Rs. 3.06 crore for violating a variety of regulations related to Know Your Customer (KYC) requirements and Prepaid Payment Instruments (PPIs).
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RBI said in a statement “It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements,”.
The RBI has issued a notice to Amazon Pay (India) to give justifications for why they shouldn’t be penalized for not following the rules.
“After considering the entity’s response, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty,” It said.
Source: Google, Amazon Pay
Penalty Issued Due to Regulatory Non-Compliance
According to the central bank, the penalty issued is the result of regulatory non-compliance and does not reflect any judgment on the validity of the agreements or transactions made between Amazon Pay (India) and its customers.
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According to a statement issued by the bank, the central bank’s decision is based on regulatory non-compliance issues and is not meant to cast doubt on the validity of any transactions or agreements made by the company with its customers.
As per the RBI statement, the penalty was issued using the rights granted to the RBI under Section 30 of the Payment and Settlement Systems Act of 2007.
Source: Google
Amazon spokesperson said that they would remain committed to operating as per regulatory guidelines and maintaining compliance.
Spokesperson said “We continue to work closely with the authorities to share our commitment with them,”.
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