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.
Last week, the RBI imposed a fine of Rs 5.72 crore on Federal Bank, Rs 70 lakh on Bank of India, Rs 1 crore each on IndusInd Bank and Kotak Mahindra Bank for non-compliance.