Guwahati: The Reserve Bank of India (RBI) has fined Ola Financial Services Private Limited (the entity) Rs. 1,67,80,000/- (Rupees one crore sixty-seven lakh eighty thousand only) for failing to comply with certain provisions of the Master Directions on PPIs dated August 27, 2021 (as updated from time to time) and the Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016. (as updated from time to time).
The penalty was issued by the RBI in accordance with Section 30 of the Payment and Settlement Systems Act of 2007. This action is based on regulatory compliance problems and is not intended to rule on the legality of any transaction or arrangement entered into by the company with its consumers.
The RBI has also revoked the registration certificates of four NBFCs.
The Reserve Bank of India has revoked the Certificates of Registration of the following firms in the execution of the powers bestowed on it by Section 45-IA (6) of the Reserve Bank of India Act, 1934.
As a result, the firms listed above are not permitted to do the business of a Non-Banking Financial Institution, as described in clause (a) of Section 45-I of the RBI Act, 1934.
Background:
It was discovered that the firm was not in compliance with the RBI's KYC criteria. As a result, the entity was served with a notice requiring it to show cause why a penalty should not be imposed for failing to comply with the orders.
Following consideration of the entity's answer, the RBI found that the aforementioned accusation of non-compliance with RBI orders was proved and merited the application of monetary penalties.
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