Amazon Pay India, a fintech platform that provides online payment services to its customers, was launched in the country in 2019.
The Reserve Bank of India, on Friday, imposed a penalty worth more than Rs 3.06 crores on Amazon Pay India. The central bank observed that the digital payment arm of American e-commerce giant Amazon was non-compliant with the RBI’s directions on KYC requirements.
“It was observed that the entity (Amazon Pay India) 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,” the central bank said.
“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,” it added. The RBI further said 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.
Amazon Pay is a fintech platform that provides online payment services to its customers. It was launched in India in February 2019 and just like any other UPI (or Unified Payments Interface) platform, the fintech platform lets its customers use their Amazon Pay UPI ID to shop on Amazon.in. Users can also make payments for their daily purchases, including recharges and bill payments, and more.
Elsewhere, over 30 payment aggregators (or PAs), including Amazon Pay India received in-principle authorization from the RBI to operate as online payment aggregators in February. Applications of 18 existing entities for online payment aggregators licenses are under process, the RBI said.