The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 29.60 lakh on DCB Bank Limited for non-compliance with RBI directions related to loans extended against pledged gold ornaments and jewellery for non-agricultural purposes.
The penalty, imposed through an order dated February 6, 2026, follows RBI’s Statutory Inspection for Supervisory Evaluation based on the bank’s financial position as of March 31, 2025. The central bank found that the bank had failed to maintain the prescribed loan-to-value (LTV) ratio in certain non-agricultural gold loan accounts.
RBI clarified that the penalty was imposed due to regulatory compliance deficiencies and does not affect the validity of customer transactions. The action is also without prejudice to any further regulatory measures that may be taken against the bank.