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RBI fines Ola Financial Services Rs 1.67 crores over non compliance of KYC rules

RBI fines Ola Financial Services Rs 1.67 crores over non compliance of KYC rules Image
  • Posted on 22nd Jul, 2022 05:37 AM
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RBI fines Ola Financial Services Rs 1.67 crores over non compliance of KYC rules The Reserve Bank of India (RBI) has slapped a fine of Rs 1.67 crores on Ola Financial Services, which is the financial services wing of Ola over non-compliance of its prepaid payment instrument (PPI) and know-your-customer (KYC) rules.

The Reserve Bank of India (RBI) has slapped a fine of Rs 1.67 crores on Ola Financial Services, which is the financial services wing of Ola over non-compliance of its prepaid payment instrument (PPI) and know-your-customer (KYC) rules. Also Read - Ola S1 Pro rival Simple One electric scooter revealed: Check images, features

“The penalty has been imposed in 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,” RBI wrote in its order. This means that the fine will not affect any transaction or agreement that is underway at the company. Also Read - Ola Electric announces its first Lithium-ion cell, mass production to begin by 2023

RBI in its order said that the company, that is, Ola Financial Services, was found not complying with the KYC guidelines issued by the central bank following which it issued a notice to the company to explain as to why it was not complying with the rules. Also Read - Ola cuts 500 jobs, freezes appraisal as funding trouble worsens

“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,” the order said.

After considering the company’s response, RBI concluded that the “aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty”. Thereafter, it imposed a fine of Rs 1,67,80,000 on the company.

Separately, Ola Electric has unveiled its first ever indigenously developed Lithium-ion battery. The battery was unveiled by Ola Electric CEO Bhavish Aggarwal via a post on Twitter. “The cell is the heart of the EV revolution. We need to make our own technology to scale faster and innovate,” he wrote in the post.

The company said that this battery will go into production at Ola’s Gigafactory starting 2023. The company also claimed this battery was the first indigenously developed Lithium ion battery cell in India.

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