The Reserve Bank of India imposes a penalty on Amazon Pay (India) of Rs3.06 crore

The Reserve Bank of India announced on Friday that it had fined Amazon Pay (India) Private Limited more than 3.06 crore for failing to follow certain rules on prepaid payment instruments (PPIs) and the Know Your Customer (KYC) directive.

The entity was found to be in violation of the RBI's instructions regarding the requirements for KYC, according to a statement from the RBI.

The e-commerce giant Amazon's digital payment service is known as Amazon Pay.

Amazon Pay (India) had received a notice from the RBI asking it to provide justification for why no sanctions should be applied for failing to follow the instructions.

The penalty, the central bank stated, is based on regulatory compliance issues and is not meant to question the legality of any deal that Amazon Pay (India) made with its customers.