Amazon Pay (India) Private Limited was fined Rs 3.06 crore by the Reserve Bank of India (RBI) for failing to follow the regulator’s guide lines the KYC requirements.
“The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 3,06,66,000 on Amazon Pay (India) Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as updated from time to time) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time),” the RBI said in a release on Friday.
Amazon Pay (India) had already received a notice from the RBI asking it to explain why a fine should not be imposed for failing to follow the rules.
“It was observed that the entity was non-compliant with the directions issued by RBI 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”, said the statement released by the central bank.
“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 added.
The penalty, the central bank stated, is based on regulatory compliance deficiencies and is not meant to cast doubt on the legality of any deal or agreement made by Amazon Pay (India) with its customers.
The Payment and Settlement Systems Act of 2007’s Section 30 was used by the RBI to carry out its duties. The statement went on to say that this action is based on regulatory compliance issues and is not meant to evaluate the legality of any agreements or transactions the organisation has with its clients.
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