Bright Times News: RBI imposes a hefty penalty of Rs 1.67 crore on Ola Financial Services Pvt Ltd. The Reserve Bank has informed that this fine has been imposed for non-compliance with Prepaid Payment System and KYC (Know Your Customer) rules. Ola Financial Services is a subsidiary of app-based cab company Ola. This company provides personal loans. It also provides loans for buying cars. But this time RBI fined the company.
Notice is issued
In a statement issued by the Reserve Bank, the central bank said that Ola Financial Services was not complying with the existing rules regarding KYC. The RBI said a notice had been sent to the company earlier. The notice then asked why the company would not be fined for not complying with the rules.
The rules of the Reserve Bank of India were also not followed
According to the Reserve Bank of India (RBI), the RBI, after considering the company’s response to the notice, decided that there was an error in the actual implementation of the rules and that Ola needed to be fined. According to the Reserve Bank, the fine has been imposed under Section 30 of the Payment and Settlement Systems Act, 2007.
Which other banks have been fined by RBI recently?
On Monday, the Reserve Bank of India fined three co-operative banks for non-compliance. The fines were imposed on The Nasik Merchants Cooperative Bank, Maharashtra State Co-operative Bank, and National Central Co-operative Bank.
On the other hand, the Center has recently warned the app cab company, Ola. The Center has warned the company against filing a complaint against Ola. Ola, Uber has been notified for violating passenger rights and unfair business practices.
However, this is not the first time that the Center has held meetings with app cab companies. Even then the aggregator companies were warned. Between April 1, 2022, and May 1, 2022, in just one month, 2,482 complaints were filed against Ola. Ola warned about these statistics.