The Reserve Bank on Tuesday imposed a penalty of over Rs 1.67 crore on Ola Financial Services for non-compliance of certain provisions relating to pre-paid payment instruments and know-your-customer norms.
Ola Financial Services Pvt Ltd, a subsidiary of ride-hailing app Ola, provides financial services such as lending for two-wheelers, four-wheelers, personal loans and insurance products.
“It has been observed that the entity was not complying with the directions issued by RBI on KYC requirements,” the central bank said in a statement.
It said a notice was issued to the unit advising it to show cause as to why the penalty should not be imposed for non-compliance of the directions.
“After considering the response of the entity, RBI has concluded that the aforesaid allegation of non-compliance with RBI’s directions is substantiated and warrants imposition of monetary penalty,” RBI said.
The penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by Ola Financial Services with its clients.