The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.68 crore on Ola Financial Services for non-compliance with certain provisions of know your customer (KYC) norms, the central bank said in a press release. The RBI has imposed the penalty under the Payment and Settlement Systems Act, 2007, which gives the central bank the authority to impose penalty on companies not complying with norms.
The RBI had issued a notice to the company to show cause and after considering its response, the central bank decided to impose a penalty.
Ola Financial Services, a part of taxi-hailing platform Ola, provides e-wallet services under the brand name Ola Money. The wallet is issued by Zipcash in co-branding with Ola. The company also issues credit cards and offers postpaid services.