RBI imposes Monetary Penalty on Amazon Pay (India) Private Limited
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹3,06,66,000 on Amazon Pay (India) Private Limited. RBI said the company had not complied with certain provisions of the Master Directions on Prepaid Payment Instruments and the Master Direction on KYC, and that the non-compliance was substantiated after a show-cause process under Section 30 of the Payment and Settlement Systems Act, 2007.
RBI imposed a monetary penalty under Section 30 of the Payment and Settlement Systems Act, 2007 after finding that Amazon Pay (India) Private Limited was non-compliant with directions issued by RBI on KYC requirements and certain provisions of the Master Directions on Prepaid Payment Instruments. RBI issued a show-cause notice, considered the entity’s response, and concluded that the charge of non-compliance was substantiated.
Severity Assessment
The action is a monetary penalty of over Rs 20 lakh, which sets severity 4 under the monetary band.
Amazon Pay (India) Private Limited must absorb the penalty and address the compliance gaps identified by RBI, especially around PPI direction adherence and KYC requirements. The action does not invalidate customer transactions or agreements, but it signals heightened supervisory scrutiny and the need for stronger ongoing regulatory compliance.
Published as Amazon Pay (India) Private Limited
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