RBI imposes monetary penalty on Bansal Credits Limited

**Executive Summary** This press release, dated December 05, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹6.20 lakh on Bansal Credits Limited. The penalty was levied due to non-compliance with certain provisions of the 'Reserve Bank of India (Know Your Customer (KYC)) Directions'. The penalty was issued following a statutory inspection as of March 31, 2024, and after consideration of Bansal Credits Limited's response to a show cause notice. **Key Points / Main Content** * **Penalty Imposition:** * RBI imposed a monetary penalty of ₹6.20 lakh on Bansal Credits Limited. * The penalty was issued on December 2, 2025. * **Reason for Penalty:** * Non-compliance with certain provisions of the 'Reserve Bank of India (Know Your Customer (KYC)) Directions'. * The penalty is imposed under powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934. * **Inspection and Findings:** * The statutory inspection of Bansal Credits Limited was conducted with reference to its financial position as on March 31, 2024. * The company failed to put in place any system for throwing alerts for effective identification, monitoring, and reporting of suspicious transactions. * The company failed to upload customers' KYC records onto the Central KYC Records Registry. * **Clarification:** * The action is based on deficiencies in regulatory compliance. * The monetary penalty does not pronounce on the validity of any transaction or agreement entered into by Bansal Credits Limited with its customers. * The imposition of this penalty does not prevent RBI from initiating any other action against the company. **Impact Analysis** **Bansal Credits Limited** * **Impact:** Faces a monetary penalty of ₹6.20 lakh due to non-compliance with KYC directions. * **Action Required:** Must pay the penalty and improve its compliance with KYC norms to avoid future penalties. **Customers of Bansal Credits Limited** * **Impact:** Indirectly affected as the company is penalised for failing to properly monitor and report suspicious transactions and maintain KYC records, which are meant to protect the integrity of the financial system. * **Action Required:** No direct action required but should be aware of the regulatory scrutiny the company is undergoing. **Reserve Bank of India (RBI)** * **Impact:** Responsible for enforcing compliance with its regulations to maintain the integrity of the financial system. * **Action Required:** Continue to monitor Bansal Credits Limited for compliance and take further action if necessary.

Key Entities Referenced