An online payment processing service, Amazon Pay planning to put vigorously in the digital payments business in India. Additionally, the service deals with KYC or know-your-customer rules from the Reserve Bank of India. Amazon Pay’s new India head, Mahendra Nerurkar agreed that the RBI directions around KYC forms have brought about a logjam of new digital payments customers.
Mahendra Nerurkar said, “The Amazon team take “We take customer trust very seriously and take regulatory compliance very seriously. So, there are no cutting corners around that. We are asking customers for their officially valid documents so that they can keep loading balances and using it. Further, Mahendra added, “One of their primary reasons for using stored-value instruments was that it was friction-free and easy to use. And a certain amount of friction has been introduced because of these regulations,”
Mahendra Nerurkar stated that it’s very important to find the best regulation as the team closely co-operating with regulators to find a best as well as the appropriate solution.
RBI’s latest guideline stated that the digital wallet players can issue two types of accounts. First with the transaction limit of Rs10,000 per month which can be operated with OTP whereas the second type has a transaction limit of Rs1 lakh per month which requires complete KYC. Despite the new regulations, the volume of Amazon India’s money exchanges has gone down fundamentally. While digital payment has developed significantly since the government’s decision to ban large-denomination notes in November 2016.
Over the past couple of years, company’s payments business has seen significant growth and the number of digital transaction doubled. Amazon’s Paylink allows online consumers to pay for orders through a payments link.
Nerurkar said, “The big challenge on the affordability part is that we have 20 million credit card customers in the country and that number hasn’t grown rapidly over the past few years.”