The Reserve Bank of India has imposed a penalty of over Rs 3.06 crore on Amazon Pay (India) Private Limited. The nice has been imposed for non-compliance with positive provisions associated with Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) course. “The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3,06,66,000/- (Rupees three crore six lakh sixty six thousand only) on amazon Pay (India) Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (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),” RBI stated in a remark. Amazon Pay is the virtual cost arm of e-commerce massive Amazon.
Why the penalty
The RBI had issued a understand to Amazon Pay (India) advising it to turn purpose as to why penalty will have to now not be imposed for non-compliance with the instructions. “The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007,” stated RBI within the remark.
“It was once noticed that the entity was once non-compliant with the instructions issued by way of RBI on KYC necessities. Accordingly, understand was once issued to the entity advising it to turn purpose as to why penalty will have to now not be imposed for non-compliance with the instructions, RBI additional stated.
The RBI remark, then again, made it transparent that the motion is in response to deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by way of Amazon with its shoppers.
Why the penalty
The RBI had issued a understand to Amazon Pay (India) advising it to turn purpose as to why penalty will have to now not be imposed for non-compliance with the instructions. “The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007,” stated RBI within the remark.
“It was once noticed that the entity was once non-compliant with the instructions issued by way of RBI on KYC necessities. Accordingly, understand was once issued to the entity advising it to turn purpose as to why penalty will have to now not be imposed for non-compliance with the instructions, RBI additional stated.
The RBI remark, then again, made it transparent that the motion is in response to deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by way of Amazon with its shoppers.