The Reserve Bank of India imposed a monetary penalty of ₹29.60 lakh on DCB Bank Limited by an order dated 6 February 2026, citing the Mumbai-headquartered private sector lender's failure to maintain the prescribed loan-to-value ratio in certain non-agricultural gold loan accounts during the tenure of those loans. The penalty was publicly announced on 13 February 2026 alongside similar enforcement actions against two other scheduled commercial banks.
The RBI's order followed a statutory inspection for supervisory evaluation (ISE 2025), with the supervisory assessment based on DCB Bank's financial position as at 31 March 2025. The regulator stated that the action is without prejudice to any other supervisory measure the RBI may take and that the penalty does not affect the validity of transactions conducted by the bank's customers.
GOLD LOAN LTV REQUIREMENTS
The violation identified by the RBI concerns DCB Bank's gold loan book for non-agricultural borrowers, a segment in which lenders extend credit against the pledge of gold ornaments and jewellery. The RBI prescribes a maximum loan-to-value ratio for such lending.
CONCURRENT PENALTIES
The RBI announced the DCB Bank penalty on the same day as fines against two other banks (and two NBFCs): CSB Bank received a penalty of ₹63.60 lakh, and Bank of Maharashtra was fined ₹32.50 lakh. The three bank penalties total ₹1.257 crore and were announced on the same day in separate RBI press releases. Each penalty addresses separate compliance issues identified at the respective institution during different supervisory reviews.