Recorded RBI impact
Fine: Rs 3.07 Cr
Monetary penalty · Fresh imposition
Published by RBI
3 Mar 2023
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.
Why RBI Acted
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.
Operating Impact
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.
Regulatory Basis
- Section 30 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 3.07 Cr
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity