RBI imposes Monetary Penalty on Amazon Pay (India) Private Limited

[Copycat]

Looks like some bad changes may be coming ......
I like the way Amazon Pay vouchers function, so I hope they don't change things

Reserve Bank of India - Press Releases

Date : Mar 03, 2023​

RBI imposes Monetary Penalty on Amazon Pay (India) Private Limited​

​ The Reserve Bank of India (RBI) has imposed monetary penalty of ₹3,06,66,000/- (Rupees three crore six lakh sixty six thousand only) on Amazon Pay (India) Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as updated from time to time) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time). The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. 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. Background It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements. Accordingly, notice was issued to the entity advising it 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. (Yogesh Dayal) Chief General Manager​ Press Release: 2022-2023/1824

 

[Wealth is my birth right!]

Looks like some bad changes may be coming ......
I like the way Amazon Pay vouchers function, so I hope they don't change things

Reserve Bank of India - Press Releases

Date : Mar 03, 2023​

RBI imposes Monetary Penalty on Amazon Pay (India) Private Limited​

​ The Reserve Bank of India (RBI) has imposed monetary penalty of ₹3,06,66,000/- (Rupees three crore six lakh sixty six thousand only) on Amazon Pay (India) Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as updated from time to time) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time). The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. 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. Background It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements. Accordingly, notice was issued to the entity advising it 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. (Yogesh Dayal) Chief General Manager​ Press Release: 2022-2023/1824

Amazon shouldn’t quit 🇮🇳
We depend lot by Amazon for card usages

 

[souvikr]

Amazon shouldn’t quit 🇮🇳
We depend lot by Amazon for card usages

We shouldn't create dependency in first place. For me interest of 🇮🇳 comes first, everything else later.

 

[Slayer]

Amazon shouldn’t quit 🇮🇳
We depend lot by Amazon for card usages

Amazon won't quit India for sure

Business (needs to be) boomin

 

[akshayhs]

Amazon shouldn’t quit 🇮🇳
We depend lot by Amazon for card usages

Amazon India is one of their biggest presence. Considering their market cap and dominance in global as well as national e-commerce, it would be a silly move for Amazon to close their Indian operations. I am sure they will be here in the years to come by.

The fine is a slap on the wrist when it comes to the amount of influence they have.

 

[Wealth is my birth right!]

Amazon India is one of their biggest presence. Considering their market cap and dominance in global as well as national e-commerce, it would be a silly move for Amazon to close their Indian operations. I am sure they will be here in the years to come by.

The fine is a slap on the wrist when it comes to the amount of influence they have.

Overall revenue vs fine amount it’s just a tit bit for Amazon

 

[Slayer]

Overall revenue vs fine amount it’s just a tit bit for Amazon

True

 

[satviksehgal]

for what reason has it been applied is important. Amazon ain't going anywhere but apay could see a devaluation.

 

[anirban.choudhury]

This penalty is peanuts for Amazon
No substantial changes would happen

 

[Chaitanya-a]

I'm already seeing devaluation. For partner merchants, previously they used to give higher cashbacks but now only 1-2%.

 

[Jatin1987]

for what reason has it been applied is important. Amazon ain't going anywhere but apay could see a devaluation.

As per the attachment, it's showing non compliance of KYC norms.

 

[SiddharthR]

Amazon shouldn’t quit 🇮🇳
We depend lot by Amazon for card usages

If you're saying Amazon can quit for this(nuts) penalty,
then as of now we would have not been able to buy Android phones in India...lol

 

[Strange]

As per the attachment, it's showing non compliance of KYC norms.

Right, Amazon provided wallet upi to mini kyc users, is this the reason for penalty? What do you think? @Abhishek012

RBI imposes penalty of Rs 3.06 crore on Amazon Pay (India); here's why

The fine has been imposed on Amazon Pay (India) for non-compliance with PPI regulations, says RBI

www.businesstoday.in

 

[Copycat]

We shouldn't create dependency in first place. For me interest of 🇮🇳 comes first, everything else later.

I'm not sure what you mean about the interest of IN coming first. For me, it is the interest of the Indian consumer that should come first but we all know that the powers that be prioritise the interests of merchants/business groups over that of the Indian consumers. Off-topic: And what makes my blood really boil is when these same so called Indian, "country-loving", business groups do not hesitate even the least bit to take the Indian government (and by extension the people of India) to arbitration tribunals where these groups win hundreds of crores as "compensation"

That being said, Amazon also deserves a kick on the backside for their casual way of operation. I have seen product listings, from Amazon's own sellers, like this "800g/1000g" and a quoted price and absolutely no indication whether you will get the 800g variant or the 1000g variant. I'm pretty certain that violates the most basic of the legal metrology rules

 

[souvikr]

I'm not sure what you mean about the interest of IN coming first. For me, it is the interest of the Indian consumer that should come first but we all know that the powers that be prioritise the interests of merchants/business groups over that of the Indian consumers. Off-topic: And what makes my blood really boil is when these same so called Indian, "country-loving", business groups do not hesitate even the least bit to take the Indian government (and by extension the people of India) to arbitration tribunals where these groups win hundreds of crores as "compensation"

That being said, Amazon also deserves a kick on the backside for their casual way of operation. I have seen product listings, from Amazon's own sellers, like this "800g/1000g" and a quoted price and absolutely no indication whether you will get the 800g variant or the 1000g variant. I'm pretty certain that violates the most basic of the legal metrology rules

Interest of India includes interest of Indian people, interest of Indian consumers as well.

 

[Slayer]

Interest of India includes interest of Indian people, interest of Indian consumers as well.

Ok boomer

 

[souvikr]

Ok boomer

Ok kid, go have some milk. Have you brushed your teeth?

 

[gurbina]

India cannot produce every good and service it needs for its population.
The manufacturing industry is still developing and cannot yet produce goods at the same scale and quality as other developed nations. Many of the high-tech and specialized products that India needs, are often best imported from countries that have more advanced manufacturing capabilities. Importing goods can often be more cost-effective than producing them domestically. This is particularly true for products that require large amounts of capital or specialized skills to produce.

We rely on imports for many goods and services. This is a natural part of any country's economic development.

If anything we are getting heavily punished as consumer due to very high import costs, which long term might be beneficial for the local development and manufacturing but not guaranteed, at least as of now it is far behind the market needs.
And for now it is more of an obstacle for the quick development of the country and the consumers as we are forced to settle for what's available impeding development or having to spend lots of money on imports, usually at over twice the price.

Also switching to a business owned by an Indian oligarch aka the top 1% isn't exactly progressing, it is more like taking a step back and supporting the current state of affairs. I do not think anyone wants that to continue, only the top 1% does.

Amazon/Uber certainly helped to bring up competitiveness, efficiency, tech and many other things into the market. Without them we would be years behind in many aspects without their presence pushing the bar higher.

From the consumer's view Amazon is good. For the local businesses not so much, unless they get on it or step it up. They can also use the platform to grow just like any other business and even export.

And make it rain, but nationalism in the country is toxic and often bad. And one good example is Adani wrapping himself in the Indian flag and other billionaires basically supporting getting a free pass for all the illegal and unethical things they pull.

While I can't speak for favoritism or cronyism, diversifying is key to wealth distribution and competitiveness. Right now it's like big monopolies where the same set of individuals or families are keeping all the wealth and monopolies in place.

 

[Slayer]

Ok kid, go have some milk. Have you brushed your teeth?

Yes I've had my coffee and brushed my teeth

 

[SiddharthR]

but nationalism in the country is toxic and often bad

What's your take on this: @gurbina

Really keen to hear you🙂