The Reserve Bank of India (RBI) said on Friday that it has imposed a penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited. The central bank said that it has taken this action on the company for not following certain rules of Prepaid Payment Instruments (PPIs).
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The Reserve Bank of India (RBI) said on Friday that it has imposed a penalty of Rs 3.06 crore on Amazon Pay (India) Private Limited. The central bank said that it has taken this action on the company for not following certain rules of Prepaid Payment Instruments (PPIs). A total fine of Rs 3,06,66,000 crore has been imposed on the company.
central bank sent notice
RBI said in a statement that this penalty has been imposed on PPIs for non-compliance with the provisions of Master Directions and Master Direction – Know Your Customer Direction, 2016.
The central bank said that it has been found that Amazon Pay has not complied with the directions issued on KYC requirements. It further states that accordingly, a notice has been issued to the unit, asking it to show cause as to why penalty should not be imposed on it for non-compliance of the directions. After going through the reply of Amazon Pay, RBI said that it has concluded that RBI’s allegation of non-compliance of RBI directions on the company is correct and monetary penalty is appropriate to be imposed on the company.
not related to the validity of the transaction
The penalty has been imposed in exercise of powers under Section 30 of the Payment and Settlement Systems Act, 2007 of the RBI. The central bank further said that this action is based on deficiencies in regulatory compliance. And it does not pass judgment on the validity of any transaction or agreement entered into by Amazon Pay with its customers.
A few days before this, RBI has imposed restrictions on some banks. HCBL Co-operative Bank Lucknow, Adarsh Mahila Nagari Sahakari Bank Maryadit Aurangabad, Shimsha Sahakari Bank Niyamitha Maddur-Karnataka, Uravakonda Co-operative Town Bank, Uravakonda-Andhra Pradesh and Shankarrao among the 5 public sector banks banned by the Reserve Bank of India. Mohite Patil Sahakari Bank, Akluj-Maharashtra is incorporated. Customers of HCBL Sahakari Bank Lucknow, Adarsh Mahila Nagri Sahakari Bank Maryadit, Aurangabad, and Shimsha Sahakari Bank Niyamitha Maddur will not be able to withdraw money from their own accounts due to the current liquidity crunch.
Source: www.tv9hindi.com
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