The Reserve Bank of India (RBI) has assessed ₹3.06 crore financial penalty on Amazon Pay (India) Private Ltd for non-compliance with certain vittles of its master directions relating to prepaid payment instruments (PPIs) and know your client (KYC). The central bank, in a statement, observed that Amazon Pay (India) was non-compliant with its directions on KYC conditions. This action is grounded on scarcities in nonsupervisory compliance and isn’t intended to gasp upon the validity of any sale or agreement entered into by the reality with its guests.
The RBI has observed that Amazon Pay was non-compliant with the directions issued by the central banking controller on KYC conditions. Consequently, notice was issued to the reality advising it to show cause as to why penalty shouldn’t be assessed for non-compliance with the directions. “After considering the reality’s response, RBI concluded that the forenamed charge of non-compliance with RBI directions was substantiated and warranted the duty of financial penalty,” it said. The central bank, still, added the penalty is grounded on scarcities in nonsupervisory compliance and not intended to gasp upon the validity of any sale or agreement entered into by the Amazon Pay (India) with its guests.
“RBI has assessed financial penalty on fourteen banks, as detailed below, for non-compliance with certain vittles of directions issued by RBI on ‘ Lending to Non-Banking Financial Companies( NBFCs) ’, ‘ Bank Finance toNon-Banking Financial Companies (NBFCs) ’, ‘ Loans and Advances – Statutory and Other Restrictions ’, ‘ Creation of a Central Repository of Large Common Exposures – Across Banks ’ read with the contents of indirect on ‘ Reporting to Central Repository of Information on Large Credits (CRILC) ’, ‘ Operating Guidelines for Small Finance Banks ’ and for contraventions of vittles of Section 19(2) and Section 20(1) of Banking Regulation Act, 1949,” said RBI in its press release.
The penalty has been assessed in exercise of powers vested in RBI under Section 30 of the Payment and agreement Systems Act, 2007. “We remain deeply committed to operating as per nonsupervisory guidelines and maintaining a high compliance bar, while we introduce on behalf of our guests to offer them a safe and accessible payments experience. We continue to work nearly with the authorities to partake our commitment with them, ” an Amazon prophet said.