🇮🇳 RBI ·

Reserve Bank of India imposes penalty on True Credits Private Limited

Compliance teams under the RBI KYC Directions must perform and evidence Enhanced Due Diligence for customers onboarded through non-face-to-face modes

Financial Services
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On June 5, 2026, the Reserve Bank of India imposed a monetary penalty of ₹3.10 lakh on True Credits Private Limited for failing to undertake Enhanced Due Diligence for certain customers onboarded through non-face-to-face modes, breaching the RBI (KYC) Directions.
Why it matters
RBI found one sustained charge: the company did not undertake Enhanced Due Diligence for certain customers onboarded via non-face-to-face modes, breaching the Reserve Bank of India (KYC) Directions. The EDD requirement for non-face-to-face onboarding binds regulated entities generally. The penalty followed a statutory inspection referenced to March 31, 2025 and a show-cause and hearing process, and addresses regulatory-compliance deficiencies without pronouncing on the validity of customer agreements.
Implications
  • — NBFC and digital-lending KYC teams onboarding customers through non-face-to-face modes must confirm Enhanced Due Diligence is actually performed for those customers as required under the RBI KYC Directions — RBI sustained a penalty where EDD was omitted, so non-face-to-face onboarding without documented EDD is an enforced compliance gap.
  • — Compliance teams under the RBI KYC Directions must retain evidence of the EDD performed for non-face-to-face onboardings across the inspected period, as RBI assessed the omission against the March 31, 2025 financial position during statutory inspection.

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