Ola Financial Services Pvt. Ltd. has been fined 1.67 crore rupees by the Reserve Bank of India (RBI) for failing to follow certain rules regarding pre-paid payment instruments and know your customer (KYC) requirements.
The ride-hailing company Ola’s fintech subsidiary, Ola Financial Services, provides financial services including lending for two- and four-wheelers, personal loans, and insurance products.
The fine was issued in accordance with the authority granted to the RBI under Section 30 of the Payment and Settlement Systems Act of 2007. This action is taken because of a lack of regulatory compliance and is not meant to judge the legality of any agreements or transactions the organisation has with its clients.
After taking into account the entity’s response, RBI came to the conclusion that the aforementioned accusation of failing to follow RBI instructions was true and called for the implementation of a financial penalty.
The Reserve Bank of India (RBI) has imposed monetary penalty of ₹1,67,80,000 on Ola Financial Services Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on PPIs dated August 27, 2021 and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016,” the Central Bank says.
The entity was found to be in violation of the KYC standards set forth by the RBI. It said,”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,”
The RBI also fined Kotak Mahindra Bank Ltd. 1.05 crore rupees earlier this month for failing to follow the guidelines of the central bank.
