Mumbai (Maharashtra) [India], July 12 (ANI): The Reserve Bank of India (RBI) on Tuesday said it has imposed a monetary penalty of Rs 1.68 crore on Ola Financial Services Private Limited for non-compliance with certain provisions of payment instruments and know your customers (KYC).

The RBI has imposed a monetary penalty of Rs 1,67,80,000 on Ola Financial Services Private Limited for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021, and the Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016, the central bank said in a statement.

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The penalty has been imposed in the exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers, the RBI added.

"It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions," it said.

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After considering the entity's response, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted the imposition of monetary penalty. (ANI)

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