Engine oil indicator is blinking - 2007 Bajaj Pulsar 150

it indicates a problem and should be investigated immediately
it reports on the engine ( check oil level, water level, charge rate ) and transmission ( check oil level if auto and gear selection process)
have the fault codes run asap to determine if the problem is going to costly or just sensor failure

Oil light blinking usually indicated low oil pressure / viscosity. Probably either low on oil, incorrect oil weight, poor quality oil, or needs oil changed..........Mike

1. Turn the ignition switch to the ON (II) position.
2. Press the Select/Reset knob repeatedly until the engine oil life indicator is displayed.
3. Press the Select/Reset knob for more than 10 seconds. The engine oil life indicator and the maintenance item code(s) will blink.
4. Press the Select/Reset knob for more than 5 seconds. The maintenance items code(s) will disappear, and the engine oil life will reset to 1OO.

Your check engine light---indicates a possible system failure,nothing to do with oil
You have it checked for codes,diagnose the issue and repair

Your oil should never be low.
If you go as much as 5000 miles on an oil change and really drive it hard,you may loose a 1/2 qt in 5,000 miles

BLINKING ENG. WARNING LIGHT .THIS THE INDICATION THAT THERE IS NOT ENOUGH OIL AND OIL PRESSURE IN THE SYSTEM AND YOU SHOULD ADD ENG OIL AND BRING THE CAR THE TO BE SERVICE REPLACING FILTERS AND OILS PLUS CHECKING THE CARS SAFETY FEATURES--BREAKS LIGHTS, HAND BREAKS ETC ETC ...

RESETTING THE ENGINE OIL LIFE INDICATOR
On LX and EX models

If maintenance is done by someone other than your dealer, reset the maintenance minder as follows:

1. Turn the ignition switch to ON ( II ).

2. Press the SELECT/RESET knob until the engine oil life indicator
is displayed.

3. Press the SELECT/RESET knob for about 10 seconds. The engine oil life indicator and the maintenance item code (s) will blink.

4. Press the SELECT/RESET knob for more than 5 seconds. The maintenance items code (s) will disappear, and the engine oil life indicator will reset to "100".

The 2.3 l gasoline engine uses 20W50 oil above 20 degrees F. I used a lower viscosity oil and had the same problem until I went to the 20W50 oil.

Sounds like it could be a sludge issue which can be caused from using the incorrect oil. It is a very specific synthetic type of oil that VW suggests and when you don't use it the engine can actually 'gunk' up and cause turbo failure. (This problem happened when a non-vw dealer sold me my car with the wrong type of synthetic in it and my turbo seized) 
Google: "1.8t specific oil"

try turning the key half way but dont turn on the car and hit the gas pedel three times