Amazon Pay fined Rs 3 crore for not complying with KYC norms

RBI said in a statement on Friday that “it was observed that the entity was non-compliant with the directions issued by RBI on Know-Your-Customer (KYC) requirements.”

Amazon Pay is the payments arm of ecommerce giant Amazon India and provides services such as mobile recharges, and bill payments. It also distributes insurance and wealth management products such as fixed deposits (FD) through partners.

RBI said it had first asked the entity to show cause as to why 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,” the banking regulator said.

The regulator also clarified that the action was not based on any transaction or agreement entered into by the entity.

Discover the stories of your interest

“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers,” it said. A spokesperson for Amazon India said, “We remain deeply committed to operating as per regulatory guidelines and maintaining a high compliance bar, while we innovate on behalf of our customers to offer them a safe and convenient payments experience. We continue to work closely with the authorities to share our commitment with them.”

In July 2022, RBI imposed a monetary penalty of Rs 1.67 crore on Ola Financial Services for similar reasons of non-compliance with KYC requirements.

The regulator had also fined fintech firm Obopay in August last year.

In the past, financial entities fined by the RBI have contested the decision or consulted with the regulator to get the fine reduced.

For financial year 2021-2022 (FY22), Amazon Pay India reported total income Rs 2,052.4 crore on losses of Rs 1,740.8 crore, according to regulatory filings.