Amazon Pay Penalty: RBI imposes ₹3.06 crore fine on Amazon Pay (India)
Amazon Pay (India) was penalized for not adhering to the guidelines on Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) regulations.
On Friday, the Reserve Bank of India announced that Amazon Pay (India) Private Limited had been fined more than ₹3.06 crore for violating certain provisions related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) guidelines.
According to a statement by the RBI, Amazon Pay (India) was found to be non-compliant with the KYC requirements specified in the regulatory directive.
The Reserve Bank of India (RBI) had asked Amazon Pay (India) to explain why it should not be penalized for not following the regulatory directions.
“The RBI reviewed the response provided by the company and found that it did not comply with the RBI’s instructions. Therefore, it was decided to impose a financial penalty,” the RBI stated.
The RBI clarified that the penalty imposed was due to shortcomings in meeting regulatory requirements and not an indication of the legality of any deals or transactions between Amazon Pay (India) and its customers.
Amazon Pay (India) is the digital payment platform of the e-commerce giant Amazon.
Recommended reading: Alex Murdaugh convicted of killing his wife and son: Everthing you need to know!