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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.