The penalty has been imposed in exercise of powers vested in RBI
MUMBAI: The Reserve Bank of India (RBI) has imposed monetary penalty of Rs.3.06 crore on Amazon Pay (India) Pvt Ltd for non-compliance with certain provisions of the RBI’s Master Directions with regard to Prepaid Instruments (PPIs) and Know Your Customer (KYC).
“The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007,” an RBI statement noted.
RBI added that the 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.
It was observed that the Amazon India was non-compliant with the directions issued by RBI on KYC requirements.
Accordingly, notice was issued to the company advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
After considering Amazon’s response, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.