DCB Bank Limited has been subjected to a monetary penalty of ₹29.60 lakh by the Reserve Bank of India (RBI). The penalty stems from non-compliance observed during a statutory inspection concerning deviations in the Loan-to-Value (LTV) ratio for certain gold loans sanctioned for non-agricultural uses, where the LTV exceeded the prescribed 75% threshold. The bank confirmed that the penalty amount will be paid within the stipulated timeline.
Regulatory Action Taken Against DCB Bank
DCB Bank Limited formally announced receipt of a communication from the Reserve Bank of India (RBI) regarding a regulatory action. The RBI issued a Speaking Order imposing a monetary penalty on the Bank for specific non-compliance issues identified during a statutory inspection based on the financial position as of March 31, 2025.
Details of the Violation and Penalty
The core violation relates to the RBI directions on loans against gold ornaments and jewellery. Specifically, the Bank was found to have allowed the Loan-to-Value (LTV) ratio to exceed the regulatory threshold of 75% in certain accounts during the tenure of gold loans sanctioned for non-agricultural end uses.
In exercise of its powers, the RBI imposed a penalty totaling Rs. 29.60 lakh (Rupees Twenty-Nine Lakh Sixty Thousand Only). This figure represents the quantifiable monetary impact on the listed entity resulting directly from this action.
Company Response
The Bank acknowledged the direction received on February 13, 2026. In response to the order, DCB Bank has confirmed that it will comply with the directive, stating that the penalty amount will be paid within the stipulated timeline.
Source: BSE
