RBI slaps ₹1.67 cr fine on Ola Financial Services for breach of norms

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. (Photo: PTI)

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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.67 crore on Ola Financial Services Private Limited for non-compliance with certain provisions related to pre-paid payment instruments and Know Your Customer norms.

“The RBI has imposed a monetary penalty of ₹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,” it said in a statement.

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.

The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007, the central bank said. 

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