The Reserve Bank of India (RBI) has fined Ola Financial Services Pvt Ltd Rs 1.67 crore for failing to comply with Know Your Customer (KYC) guidelines.
The fine was also imposed because the company violated certain norms set by the bank related to Prepaid Payment Instrument (PPI).
“RBI has fined Ola Financial Services Rs 1,67,80,000 for failing to comply with certain provisions of the Master Direction on PPIs dated 27 August 2021 and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated 25 February 2016 ‘ the RBI said. According to RBI, this action is based on shortcomings in regulatory compliance and is not intended to validate any transactions or agreements the company has entered into with its customers.
“The company was found to have failed to comply with RBI’s guidance on KYC requirements. Accordingly, a notice was served on the company asking it to provide reasons why it should not incur a penalty for non-compliance with the instructions,” RBI said. After reviewing the company’s response, RBI concluded that the above allegation of non-compliance with RBI instructions was well founded and warranted the imposition of a fine, it said.
