Mumbai, Feb. 15 -- The Reserve Bank of India (RBI) has been focused on plugging gaps in implementing know-your-customer (KYC) checks by lenders and other regulated entities, chastising them through monetary penalties and even imposing business restrictions.

Some of the recent instances include restrictions on Paytm Payments Bank, and most recently, on business payment solutions providers (BPSPs, typically fintech companies). Even in October, RBI had fined the payments bank Rs.5.39 crore for non-compliance with some provisions of KYC guidelines, cybersecurity framework, etc.

Others have not been spared either. Through the past year, the regulator has pulled up larger lenders like Axis Bank and Standard Chartered Bank, apart from a clutch...