RBI slaps Rs 1.7 cr fine on Ola Financial Services for non-compliance

"RBI has imposed a monetary penalty of Rs 1,67,80,000/- (Rupees one crore sixty-seven lakh eighty thousand only) 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 (as updated from time to time)," said RBI in a statement.

The penalty has been imposed by RBI in the exercise of its power under Section 30 of the Payment and Settlement Systems Act, 2007.

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, the central bank said.

"It was observed that the entity was non-compliant with the directions issued by RBI  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 the directions.

"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," said RBI.