Ola Financial Services Private Limited has been fined Rs 1.67 crore by the Reserve Bank of India for noncompliance with KYC norms.
A penalty was also imposed by the RBI because the company violated certain norms regarding Prepaid Payment Instruments or PPIs. Earlier, the central bank had sent a show cause notice to Ola Financial Services, which was not responded to in a satisfactory manner. According to the RBI, Ola Financial Services Private Limited (the entity) was fined Rs 1,67,80,000/- (Rupees 1,67,80,000 only) for non-compliance with certain provisions of the Master Direction on PPIs dated August 27, 2021 (as updated from time to time) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time). RBI fined Ola Financial Services Rs 1,67,80,000 for not complying with its Know Your Customer guidelines.
A penalty has also been imposed by the RBI under the powers vested in it by Section 30 of the Payment and Settlement Systems Act of 2007. According to the RBI, this action is based on deficiencies in regulatory compliance and is not intended to challenge any transaction or agreement entered into by the entity with its customers. RBI guidelines on KYC requirements were not followed by Ola Financial Services, according to RBI. It was therefore issued a notice advising the entity to provide reasons for not imposing a penalty for noncompliance. A monetary penalty was imposed by the RBI after considering Ola Financial Services’ response to the charge of non-compliance.