True Credits Private Limited appears to be a non-bank financial company (NBFC) providing credit services, and the enforcement action concerns KYC/AML compliance deficiencies, but the entity type and specific payments scope are unclear, requiring human review.
Low confidence — requires human review. While KYC non-compliance is relevant to payments regulation, the update does not explicitly confirm True Credits operates as an authorized payment institution or e-money institution.
Specialism
The RBI imposed a monetary penalty of ₹3.10 lakh on True Credits Private Limited for failure to undertake Enhanced Due Diligence (EDD) measures, which is a core AML/CTF compliance obligation.
The non-compliance specifically concerns Know Your Customer (KYC) and Enhanced Due Diligence (EDD) requirements, which are fundamental AML/CTF regulatory obligations for financial institutions.
2026-06-15 09:03:44·pthandapani@vixio.com
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Press Releases - Reserve Bank of India
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TITLE: India's Reserve Bank Imposes Monetary Penalty on True Credits Private Limited for Know Your Customer Non-Compliance
BODY:
On June 12, 2026, the Reserve Bank of India (RBI) announced it had imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand) on True Credits Private Limited for non-compliance with the Reserve Bank of India (Know Your Customer (KYC)) Directions. The RBI issued the penalty by order dated June 5, 2026, exercising powers under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
The RBI conducted a statutory inspection of True Credits Private Limited with reference to its financial position as of March 31, 2025. Following supervisory findings of non-compliance with RBI directions, the RBI issued a notice to the company requiring it to show cause why a penalty should not be imposed. After considering the company's response and oral submissions during a personal hearing, the RBI sustained a charge against True Credits Private Limited: the company failed to undertake Enhanced Due Diligence (EDD) measures for certain customers onboarded through non-face-to-face modes.
The penalty reflects deficiencies in regulatory compliance and does not pronounce upon the validity of any transaction or agreement entered into by the company with its customers. The RBI stated that imposition of this monetary penalty is without prejudice to any other action it may initiate against the company. This enforcement action demonstrates the RBI's continued focus on ensuring financial institutions comply with know-your-customer requirements, particularly regarding customer due diligence procedures for remote onboarding channels.
Press Releases - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Press Releases ( 196 kb ) Date : Jun 12, 2026 RBI imposes monetary penalty on True Credits Private Limited The Reserve Bank of India (RBI) has, by an order dated June 5, 2026, imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand only) on True Credits Private Limited (the company) for non-compliance with certain provisions of the 'Reserve Bank of India (Know Your Customer (KYC)) Directions' issued by RBI. This penalty has been imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934. The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions. After considering the company's reply to the notice and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty: The company failed to undertake Enhanced Due Diligence (EDD) measures for certain customers onboarded through non-face-to-face modes. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company. 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