The Reserve Bank of India (RBI) has imposed monetary penalty of ₹1.678 crore on Ola Financial Services Private Ltd for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC).
The central bank, in a statement, said it was observed that Ola Financial Services was non-compliant with the directions issued by it on KYC requirements.
Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with directions.
After due consideration
“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,” the central bank said.
RBI said the penalty has been imposed in exercise of powers vested in it under Section 30 of the Payment and Settlement Systems Act, 2007.
The central bank observed that this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.