{"id":270113,"date":"2022-07-14T18:00:24","date_gmt":"2022-07-14T12:30:24","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=270113"},"modified":"2022-07-14T16:16:29","modified_gmt":"2022-07-14T10:46:29","slug":"rbi-imposes-penalty-of-more-than-rs-1-crore-on-ola-financial-services-private-ltd-for-non-compliance-with-master-direction-on-prepaid-payment-instruments-2021-and-know-your-customer-2016","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/14\/rbi-imposes-penalty-of-more-than-rs-1-crore-on-ola-financial-services-private-ltd-for-non-compliance-with-master-direction-on-prepaid-payment-instruments-2021-and-know-your-customer-2016\/","title":{"rendered":"RBI imposes penalty of more than Rs. 1 crore on Ola Financial Services Private Ltd. for non-compliance with Master Direction on Prepaid Payment Instruments, 2021 and Know Your Customer, 2016"},"content":{"rendered":"
\n

\n

On 12-07-2022, the Reserve Bank of India (\u2018RBI’) imposed a penalty of Rs 1 crore and 67.80 lakh on Ola Financial Services Private Ltd (\u2018Ola’) for not complying with certain provisions of Master Direction on Prepaid Payment Instruments (\u2018PPI’) dated 27-08-2021 and Master Direction Know Your Customer (\u2018KYC’) Direction dated 25-02-2016.<\/p>\n

Key Points:<\/p>\n

    \n
  1. Ola was non-compliant with KYC directions issued by RBI to which a show cause was issued as to why penalty should not be imposed.<\/li>\n
  2. On the basis of Ola’s response, RBI concluded that there is non-compliance and warranted imposition of monetary penalty.<\/li>\n
  3. The penalty is based on deficiencies in regulatory compliance and the intention is not to pronounce validity of any transaction or agreement entered into by the entity with its customers.<\/li>\n
  4. The penalty has been imposed in exercise of powers vested in RBI under Section 30<\/a> of the Payment and Settlement Systems Act, 2007<\/a> that should be paid within a period of 30 days from the date of issue.<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    On 12-07-2022, the Reserve Bank of India (\u2018RBI’) imposed a penalty of Rs 1 crore and 67.80 lakh on Ola Financial Services <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[50224,29945,3734,50222,2627,50223,2611],"class_list":["post-270113","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-notifications","tag-know-your-customer-2016","tag-master-direction","tag-Ola","tag-ola-financial-services-private-ltd","tag-Penalty","tag-prepaid-payment","tag-RBI"],"yoast_head":"\nRBI imposes penalty of more than Rs. 1 crore on Ola Financial Services Private Ltd. for non-compliance with Master Direction on Prepaid Payment Instruments, 2021 and Know Your Customer, 2016 | SCC Times<\/title>\n<meta name=\"description\" content=\"On 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