On 3-3-2-2023, the Reserve Bank of India (‘RBI’) imposed a penalty of Rs. 3.06 crore on Amazon Pay (India) Private Limited for non-compliance of KYC requirements.
The Amazon Pay has been penalized for non- compliance of the following Master Directions that were issued by RBI:
- Master Directions on Prepaid Payment Instruments (‘PPI’) dated 27-8-2021.
Master Directions on Know Your Customer (KYC) Direction, 2016 dated 25-2-2016.
It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions. After considering the entity’s response, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.