RBI fines Amazon Pay India over ₹3 crore for non-compliance with KYC regulations

RBI has fined Amazon Pay India more than Rs. 3.06 crore for non-compliance with certain provisions related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) direction. The RBI found that Amazon Pay India had failed to adhere to KYC requirements as directed by the RBI. After being notified of non-compliance, Amazon Pay India was given an opportunity to respond and provide reasons why a penalty should not be imposed.

However, the RBI concluded that the non-compliance charge was substantiated and imposed a monetary penalty based on deficiencies in regulatory compliance. The penalty does not question the validity of any customer transaction or agreement made with Amazon Pay (India). Amazon Pay is Amazon's digital payment division. The RBI enforced the penalty under Section 30 of the Payment and Settlement Systems Act, 2007.