Amidst rising cases of cyberfraud, Know Your Customer (KYC) details have become a crucial tool for verification to enhance security. Although all payment aggregators have migrated to obtaining KYC information via video instead of personal visits, some including Amazon Pay had delayed the process. This has led to a Rs 3 crore fine from the Reserve Bank of India against Amazon Pay, and similar penalties against other platforms as well.
Other entities also affected
The fintech arm of global internet giant Amazon, has been penalised by the central bank, despite being licensed as a payment aggregator along with 31 others. Another app US-based Obopay has also been slapped with a fine of almost Rs 6 crore, while Mannapuram Finance has to pay Rs 1.67 crore and Ola Financial has a Rs 17.63 lakh penalty.
Action follows show cause notice
Amazon Pay, along with the other entities, had received a show cause notice for non-compliance with prepaid payment instrument (PPI) and KYC norms. After the response from fintech apps, the central bank concluded that the charges were substantiated and imposed the penalties.
In response to the action, Amazon reiterated its commitment towards compliance, along with innovation in services for needs of the consumers.
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