Amazon Pay Penalty: The Reserve Bank of India (RBI) has imposed a fine of Rs 3.66 crore on online UPI payment platform Amazon Pay India. It is alleged that Amazon Pay was not following the rules related to Know Your Consumers (KYC). After this this action has been taken.
RBI has imposed a monetary penalty of over Rs 3 crore on Amazon Pay (India) Pvt Ltd for non-compliance with certain provisions on Prepaid Payment Instruments (PPIs). The penalty has been imposed under Section 30 of the Payment & Settlement Systems Act, 2007.
— ANI (@ANI) March 3, 2023
RBI had issued notice
The Reserve Bank of India had asked Amazon Pay to follow the rules related to KYC. Along with this, a show cause notice was also issued for neglect. Why you should not be fined for non-compliance of RBI instructions. The company replied, but RBI was not satisfied.
action taken under these rules
RBI has taken penalty action under Section 30 of the Payment and Settlement Act 2007. The prepaid prepayment instrument rules came into effect on 27 August 2021. Which has been updated from time to time. Whereas instructions related to KYC were issued on 25 February 2016. But Amazon Pay India was ignoring these rules.
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