Amazon Pay launches Rs 2,000 note collection service: How it works

Amazon Pay has announced a new service to collect Rs 2,000 bank notes from your doorstep, giving another option to holders to hand over the notes that will go out of circulation later this year. The Reserve Bank of India last month announced the withdrawal of Rs 2,000 notes from circulation and urged holders to submit eligible notes at banks.

Right after the announcement, most people queued up at banks to submit notes, while several people resorted to spending money using Rs 2,000 notes, such as paying at petrol pumps and for online food orders. But an unprecedented rush caused many stores to refuse to accept the notes. Amazon says its new service will bring relief to people concerned about getting rid of the Rs 2,000 banknotes.

Amazon Pay’s new ‘cash load at doorstep’ service will allow customers to hand out additional cash in the form of Rs 2,000 banknotes to delivery agents at the time of Cash-on-Delivery orders. This amount will be deposited to your account as the Amazon Pay balance, allowing customers to use their notes for digital transactions. You can use the balance for mobile and DTH recharges, paying bills, and shopping on the shopping platform.

But to be able to utilise this service, Amazon mandates Know-Your-Customer compliance. In other words, your Amazon Pay account should be verified through the KYC system. To make your account KYC compliant, you can request video KYC, which the company says takes between 5 to 10 minutes. Amazon also said that you will be able to top up your Amazon Pay balance up to Rs 50,000 per month. This is a dramatically higher limit than what banks can accept at a time. According to RBI guidelines, you can submit a maximum of Rs 20,000 in Rs 2,000 notes at a time.

“The facility to top up your Amazon Pay balance with cash handed to delivery agents at your doorstep is one of our unique services in India available to full KYCed customers. Staying true to our mission, we will continue to provide holistic experiences to our customers by facilitating such simplified solutions and further catalyse the digital payments revolution in India,” says Vikas Bansal, Whole-time Director at Amazon Pay India.