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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3,06,66,000 (Rupees Three crore six lakh sixty-six thousand only) on Amazon Pay (India) Private Limited for non-compliance with certain regulatory directions.
The penalty has been levied for violations of the Master Directions on Prepaid Payment Instruments (PPIs), 2021 and the Master Direction – Know Your Customer (KYC) 2016, as amended from time to time. The RBI stated that this action is based on deficiencies in regulatory compliance and is not intended to question the validity of any transactions undertaken by the company with its customers.
During its regulatory review, RBI found that Amazon Pay (India) Private Limited did not adhere to the mandated KYC requirements for prepaid payment instruments. Consequently, the RBI issued a show-cause notice to the company, asking why a penalty should not be imposed. After considering the company’s response, RBI concluded that the non-compliance was substantiated, leading to the imposition of the monetary penalty.
The Reserve Bank of India continues to enforce compliance with regulatory norms to maintain the integrity and safety of the digital payment ecosystem in the country.
[RBI]