Document title: RBI imposes monetary penalty on True Credits Private Limited
Issuing authority: Reserve Bank of India
Reference: Press Release: 2026-2027/445
Date: 12 June 2026
Regulatory and Policy Measures
The RBI, exercising powers under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934, issued an order dated 5 June 2026 imposing a monetary penalty of ₹3.10 lakh on True Credits Private Limited. The penalty arises from the company’s non‑compliance with the RBI’s Know Your Customer (KYC) Directions, specifically its failure to undertake Enhanced Due Diligence (EDD) for certain customers onboarded through non‑face‑to‑face modes. The supervisory inspection considered the firm’s financial position as of 31 March 2025. After a notice‑show‑cause, the company’s reply and oral submissions at a personal hearing, the RBI sustained the charge and imposed the penalty, stating that the action does not prejudice any further regulatory steps that may be taken.
Banking and Credit
The breach highlights a lapse in the implementation of KYC and EDD requirements that are integral to the banking and credit sector’s risk‑mitigation framework. By onboarding customers without the mandated enhanced scrutiny, the company contravened the regulatory expectations set for financial intermediaries, potentially exposing the sector to heightened AML/CTF risks.
The RBI’s enforcement underscores its continued focus on strengthening compliance across non‑face‑to‑face onboarding channels and reinforces the importance of adhering to the KYC Directions to maintain the integrity of the credit ecosystem.
In conclusion, the penalty serves as a regulatory reminder that adherence to KYC and EDD norms remains a non‑negotiable prerequisite for entities operating in the financial services space, and the RBI may pursue additional actions if further non‑compliance is identified.