The fine was also imposed since the company breached certain norms laid out by the bank in connection with Prepaid Payment Instrument (PPI).
The Reserve Bank of India (RBI) has imposed a fine of Rs 1.67 crore on Ola Financial Services Pvt Ltd for non-compliance with know your customer (KYC) guidelines.
The fine was also imposed since the company breached certain norms laid out by the bank in connection with Prepaid Payment Instrument (PPI).
“The RBI has imposed monetary penalty of Rs 1,67,80,000 on Ola Financial Services 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,” said the RBI. According to the RBI, 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.
“It was observed that the entity was non-compliant with the directions issued by the 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,” the RBI said. After considering the entity’s response, the RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty, it said.
Source:indianexpress.com