RBI fines Amazon Pay India Rs 3.06 crore for not complying with KYC, PPI norms

The action was taken by RBI under Section 30 of the Payment and Settlement Systems Act (Representative image)

The Reserve Bank of India (RBI) on March 3 said it has slapped a penalty of Rs 3.06 crore on Amazon Pay (India) Pvt Ltd, charging the company of not complying with the know your customer (KYC) norms.

The company has also been charged of being non-complaint with some of the provisions of Prepaid Payment Instruments (PPIs), as per the release issued by the central bank.

The total monetary penalty is of Rs 3,06,66,000, and has been levied for "non-compliance with certain provisions of the Master Directions on 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.

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The banking sector regulator further noted that a show cause notice was issued to Amazon Pay India, after "it was observed" that the entity was non-compliant with the KYC norms issued by it.

After considering Amazon Pay India's response, RBI said it "concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty".

The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007, the central bank noted, further stating that 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 Amazon Pay India with its customers.