Amazon Pay, Mannapuram, And Ola Fined By RBI For Non-Compliance Wigh KYC Norms
New Delhi, 4th March 2023: Know Your Customer (KYC) information has become an essential tool for verification to strengthen security in light of the rise in cyberfraud incidents. All payment aggregators have switched to gathering KYC information via video rather than in-person meetings, however some, like Amazon Pay, have delayed the procedure. As a result, the Reserve Bank of India fined Amazon Pay Rs 3 crore and imposed equivalent sanctions on other platforms.
Despite sharing a licence as a payment aggregator with 31 other companies, Amazon’s fintech division was penalised by the central bank.
The US-based Obopay app was fined Rs 6 crore fine, penalties of Rs 1.67 crore were imposed on Mannapuram Finance and Rs 17.63 lakh for Ola Financial.
A show-cause notice has been sent to Amazon Pay and the other businesses for breaking the rules of PPIs and KYCs. After hearing back from fintech applications, the central bank came to the conclusion that the accusations were true and imposed the fines.
Amazon responded to the action by restating its commitment to compliance and innovation in services to meet customer expectations.
