RBI imposes monetary penalty on True Credits Private Limited
Case Brief
By an order dated June 5, 2026, RBI imposed a monetary penalty of Rs 3.10 lakh on True Credits Private Limited. The action followed a statutory inspection and subsequent show-cause proceedings, in which RBI found that the company had failed to undertake Enhanced Due Diligence for certain customers onboarded through non-face-to-face modes, contrary to RBI's KYC Directions. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.
RBI imposed a monetary penalty on True Credits Private Limited for non-compliance with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions. The charge sustained after inspection and proceedings was that the company failed to undertake Enhanced Due Diligence (EDD) measures for certain customers onboarded through non-face-to-face modes. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.
Severity Assessment
This is a monetary penalty of Rs 3.10 lakh, which falls within the lowest monetary band and carries no structural restriction.
True Credits Private Limited must absorb the penalty and ensure stronger KYC/EDD controls for customers onboarded through non-face-to-face channels. The release also makes clear RBI may initiate any other action it deems appropriate, while the findings do not validate any customer transaction or agreement.
Published as True Credits Private Limited
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