DCB Bank Limited has informed the Exchange about General Updates
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The Reserve Bank of India (RBI) has fined DCB Bank Rs. 29.60 lakh for not following its rules on loans given against gold ornaments and jewellery. Specifically, the bank exceeded the permitted 75% loan-to-value (LTV) ratio on some gold loans taken for non-agricultural purposes. The issue was flagged during the RBI's statutory inspection of the bank's financial position as on March 31, 2025. The penalty was imposed under the Banking Regulation Act, 1949. The bank has stated it will pay the penalty within the required timeline.
The penalty amount is quite small (Rs. 29.60 lakh) relative to a bank's overall operations, so the direct financial impact is minimal. However, it points to gaps in compliance with gold loan norms, which may raise some concerns about the bank's internal controls and risk management practices among investors.