The Reserve Bank of India (RBI) on Friday said it has imposed Rs 3.06 crore penalty on Amazon Pay (India), the digital payment arm of e-commerce giant Amazon, for violation of norms related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC).
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, RBI said in a statement.
After considering Amazon Pay’s response, RBI concluded that the charges of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty, the central bank said.
The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007.
“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers,” the RBI said.