The Reserve Bank of India has imposed a monetary penalty of Rs 3.10 lakh on True Credits Private Limited for non-compliance with certain provisions of the RBI's Know Your Customer (KYC) guidelines.

The penalty was imposed through an order dated June 5, 2026, under the provisions of the Reserve Bank of India Act, 1934.

The regulatory action follows a statutory inspection of the company conducted with reference to its financial position as of March 31, 2025. Based on supervisory findings and related correspondence, the RBI issued a show-cause notice asking the company to explain why a penalty should not be levied for the identified compliance lapses.

After examining the company's written response and oral submissions made during a personal hearing, the central bank concluded that the charge against the company was substantiated.

According to the RBI, True Credits failed to undertake the required Enhanced Due Diligence (EDD) measures for certain customers who were onboarded through non-face-to-face channels, resulting in a breach of the regulator's KYC directions.

The RBI clarified that the penalty relates solely to deficiencies in regulatory compliance and does not reflect on the validity of any transactions or agreements entered into by the company with its customers. The regulator further stated that the penalty is without prejudice to any additional action that may be initiated against the company in the future.