The Reserve Bank of India (RBI) on Friday stated in an official release that it has imposed a penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited (the entity) for non compliance with certain provisions of the Prepaid Instruments (PPIs) and Know Your Customer (KYC) direction.

“The Reserve Bank of India (RBI) has imposed monetary penalty of ?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)," stated RBI in its release.

RBI said that it observed that the entity was non-compliant with the directions issued by RBI on KYC requirements and accordingly, a 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.

RBI further said after considering the entity’s (Amazon Pay) response, it concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

According to the press release, the penalty has been imposed under Section 30 of the Payment and Settlement Systems Act, 2007 and 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.