RBI imposed a fine of Rs 3.66 crore on Amazon Pay India, know which rules were taken action
The Reserve Bank of India (RBI) has imposed a fine of Rs 3.6 crore on Amazon Pay India. RBI has taken action against Amazon Pay for not following the guidelines.
Reserve Bank of India (RBI) has imposed a fine of Rs 3,06,66,000 (Rs 3 crore 3 lakh 66 thousand) on the online UPI payment platform Amazon Pay India. The RBI said that Amazon Pay has been fined for not following certain criteria of prepaid payment instruments (PPI) and not following the rules related to No Your Consumers (KYC).
The RBI had also issued a show cause notice to Amazon Pay India before imposing a fine, asking why you should not be fined for not following RBI's instructions. The notice was also responded to by Amazon, but the RBI was not satisfied with the reply.
The RBI has taken this action under Section 30 of the Payment and Settlement Act 2007 to impose a fine on Amazon Pay. The Prepaid Practicing Institute Rules were implemented on 27 August 2021, and have also been updated from time to time. At the same time, the instructions related to KYC have been released on 25 February 2016, but Amazon Pay India was constantly ignoring these rules.