RBI imposes ₹3.10 lakh penalty on True Credits for KYC lapses

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.10 lakh on True Credits Private Limited for non-compliance with its Know Your Customer (KYC) guidelines. The penalty order, dated June 5, 2026, follows a statutory inspection of the company’s financial position as of March 31, 2025.

According to the RBI, True Credits failed to implement Enhanced Due Diligence (EDD) measures for certain customers onboarded through non-face-to-face modes. This violation was identified during supervisory reviews and subsequent correspondence with the company. A show-cause notice was issued, and after reviewing the company’s response and oral submissions, the penalty was deemed necessary.

The RBI clarified that the penalty is based on regulatory deficiencies and does not question the validity of any transactions or agreements between True Credits and its customers. The action was taken under the powers granted by the Reserve Bank of India Act, 1934, specifically sections 58G(1)(b) and 58B(5)(aa).

Enhanced Due Diligence is a critical component of KYC compliance, especially for customers onboarded through digital or remote channels. Non-compliance in this area raises concerns about potential risks in financial transactions.

This penalty underscores the RBI’s commitment to enforcing strict adherence to its regulatory framework. It also serves as a reminder to financial entities to prioritize compliance with KYC norms to maintain the integrity of the financial system.

Source: Reserve Bank of India press release, Fri, 12 Jun 2026 17:40:00. http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62923