Amazon pay, the digital payment arm of e-commerce giant Amazon, faced an imposition of penalty of over Rs. 3.06 crore by The Reserve  Bank of India (RBI)  for non-compliance with certain provisions related to Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC) direction. RBI stated that “It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements.”

The penalty is based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the Amazon Pay (India) with its customers.

A notice to Amazon Pay (India) was issued advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions. “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.”