RBI imposes Rs 3.06 crore penalty on Amazon Pay

RBI imposes Rs 3.06 crore penalty on Amazon Pay: Action for non-compliance of KYC norms

Mar 3, 2023 - 19:26
RBI imposes Rs 3.06 crore penalty on Amazon Pay

The Reserve Bank of India (RBI) on Friday imposed a penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited. The company was not following the instructions related to Know Your Customer ie KYC. RBI said that the penalty has been imposed under section 30 of the Payment and Systems Settlement Act, 2007.
RBI had issued a notice regarding this. In this, it was asked why a penalty should not be imposed for non-compliance with the instructions. After considering the reply of the company, RBI decided to impose a monetary penalty. The fine comes at a time when the RBI is tightening its compliance requirements for fintech and big tech firms in the country.
Amazon also has UPI service along with e-commerce in India. However, its share in the UPI market is very less. PhonePe has the highest market share of 49% in India's UPI market. PhonePe is followed by Google Pay with a 34% share, Paytm with an 11% share, and Credit Pay with a 1.8% share. WhatsApp, Amazon Pay and banking apps account for 3.5%.
With the launch of UPI in 2016, there was a revolution in the world of digital payments. UPI gave the facility to transfer money directly to the bank account. Earlier there was a trend of the digital wallet. There is a hassle like KYC in the wallet, while nothing has to be done in UPI.
The operation of RTGS and NEFT payment systems in India is with the RBI. National Payment Corporation of India (NPCI) operates systems like IMPS, RuPay, and UPI. The government mandated a zero-charge framework for UPI transactions from January 1, 2020.

Muskan Kumawat Journalist & Writer