Mumbai, Jul 12: The Reserve Bank on Tuesday imposed a penalty of over Rs 1.67 crore on Ola Financial Services for non-compliance with certain provisions related to pre-paid payment instruments and Know Your Customer norms.

Ola Financial Services Private Limited, a subsidiary of ride-hailing app Ola, offers financial services such as lending for two-wheelers, four-wheelers, personal loans and insurance products.

Also Read | Hyundai Motor To Build Dedicated EV Plant in South Korea by 2025: Report.

"It was observed that the entity was non-compliant with the directions issued by RBI on KYC requirements," the central bank said in a statement.

A 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 added.

RBI Lifts Restrictions on Mastercard Asia, Allows Onboarding of New Domestic Customers

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

The penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by Ola Financial Services with its customers, it added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)