RBI Slaps INR 87.5 Lakh Fine On Ola Financial Services For Flouting KYC & PPI Norms

The Reserve Bank of India has imposed a penalty of INR 87.55 Lakh on Ola Financial Services for flouting various regulatory norms.

While a fine of INR 33.40 Lakh has been imposed on the fintech arm of ride-hailing giant Ola for  non-compliance with know your customer (KYC) norms, another penalty of INR 54.15 Lakh has been imposed for contravening master directions on prepaid payment instrument (PPI).

In a statement, the RBI said Ola Financial Services was issued a show cause notice to explain why the penalty should not be imposed on the company.

 “… After considering their written responses and the oral submissions made during the personal hearing, RBI concluded that the aforesaid charges of noncompliance with RBI directions were substantiated and warranted imposition of monetary penalty,” said the central bank. 

The central bank also said that Ola Financial Services had also reported instances of shortfall in balance in its escrow account and filed an application for compounding of the violation.

The fines were imposed by the RBI in exercise of powers under Section 30 and Section 31 of the Payment and Settlement Systems Act, 2007. 

(This story will be updated soon.)

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