According to media reports, the Reserve Bank of India (RBI) has imposed fines on Ola Financial Services for non-compliance with regulatory norms.
Ola Financial Services was fined Rs 33.40 lakh for not adhering to Know Your Customer (KYC) requirements and an additional Rs 54.15 lakh for violations under the Payment and Settlement Systems Act, 2007, according to media reports.
According to media reports, the RBI stated that Ola Financial Services breached the KYC guidelines set by the central bank.
Additionally, media reports indicated that the RBI identified issues related to balance shortfalls in Ola’s escrow account. Ola Financial Services submitted a compounding application for these violations, which was reviewed by the RBI.
According to media reports, after evaluating the application and the verbal presentations during the personal hearing, the RBI concluded that Ola’s non-compliance could be compounded.
The central bank emphasised that the penalties are based on regulatory compliance shortcomings and do not reflect judgments on the legality of any transactions or agreements between Ola Financial Services and its customers, according to media reports.
The fines on Ola Financial Services are part of a broader action by the RBI, which also imposed penalties on Visa Worldwide and Manappuram Finance for similar regulatory breaches, according to media reports.
According to media reports, Visa Worldwide was fined Rs 2.4 crore for non-compliance with directions, while Manappuram Finance faced a penalty of Rs 41.5 lakh for KYC violations. The RBI's actions underscore the importance of adherence to regulatory standards in the financial sector.
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