RBI fines Ola Financial Services Rs.1.67 Cr for violating regulations.
The Reserve Bank of India (RBI) fined Ola Financial Services Rs. 1.67 crore on Tuesday for disregarding its instructions regarding prepaid payment instruments.
In a statement, the RBI stated that Ola Financial Services Private Limited had been fined Rs.1,67,80,000 for failing to comply with the requirements of the Master Directions on PPIs
The ride-hailing app Ola's subsidiary Ola Financial Services Private Limited provides financial services including lending for two- and four-wheelers, personal loans, and insurance products.
The penalty was assessed using the authority given to RBI by Section 30 of the Payment and Settlement Systems Act of 2007, the central bank claims.
The central bank reported that "it was noticed that the company was non-compliant with the guidelines issued by RBI on KYC standards."
The entity received a notification instructing it to provide justification as to why a penalty should not be levied for failing to follow the orders, according to the statement.
It added that the fine is based on regulatory compliance shortcomings and is not meant to rule on the legality of any deal that Ola Financial Services has made with its clients.