The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.67 crore on Ola Financial Services for non-compliance with certain provisions related to pre-paid payment instruments and KYC norms.
“The RBI has imposed a monetary penalty of Rs 1,67,80,000 on Ola Financial Services Private Limited for non-compliance with certain provisions of the Master Directions on PPIs dated 27 August, 2021 and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016,” the central bank said in a statement.
The penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by Ola Financial Services with its customers, it added.
“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, it added.
Ola Financial Services Private Limited, a subsidiary of ride-hailing app Ola, offers financial services such as lending for two-wheelers, four-wheelers, personal loans and insurance products.
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