The Reserve Bank of India (RBI) has imposed a fine of Rs. 3,06,66,000/- on Amazon Pay (India) Private Limited for failing to comply with provisions of its Master Directions pertaining to Know Your Customer (KYC) and Prepaid Payment Instruments (PPIs).
The fine was imposed under Section 30 of the Payment and Settlement Systems Act, 2007 which empowers the RBI to impose a monetary penalty for committing a default under or contravening the provisions of said Act or of any regulation, order or direction issued thereunder.
When it was found that the entity was not complying with the RBI directions on KYC requirements, a notice was duly served upon the entity as required under the said Section, asking it to show cause as to why a penalty should not be imposed. Not satisfied with the entity’s response, the RBI decided that the charge of non-compliance was “substantiated and warranted imposition of monetary penalty”.
However, it has been expressly clarified in the press release dated March 3, 2023, that the levy of penalty does not have any bearing on the validity of Amazon Pay’s transactions with its customers.