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It got banned by most cinema chains on release, due to blasphemous content, and full frontal male nudity.

Edit:

OMG, despite people voting this comment up I am of course talking about Life of Brian and not Holy Grail...

...I'll see myself out.

It wasn't banned in the United States, which the OP said it would.

No, he said it couldn’t be made there, which seems about right

Well certainly not, you don't have enough castles. (And where would you get the coconuts?)