DCB Bank fined ₹29.60 lakh by RBI for LTV ratio non-compliance on gold loans
DCB Bank Limited has been fined ₹29.60 lakh by the RBI. The penalty is for exceeding the 75% LTV ratio on gold loans for non-agricultural use. This non-compliance was observed during a statutory inspection as of March 31, 2025.
The penalty amount of ₹29.60 lakh is relatively small for a bank and is unlikely to have a significant financial impact.
The imposition of a monetary penalty by the RBI indicates a negative event for the bank.
DCB Bank Limited has been penalized ₹29.60 lakh by the Reserve Bank of India (RBI) for non-compliance with directions concerning loans against gold ornaments and jewellery. The penalty was imposed because the Loan-to-Value (LTV) ratio exceeded the prescribed threshold of 75% for certain gold loans sanctioned for non-agricultural purposes.
The RBI's decision, communicated via a letter dated February 13, 2026, stems from a statutory inspection of the bank's financial position as of March 31, 2025. The penalty is levied under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
The bank has stated that the penalty amount will be paid within the stipulated timeline. This action pertains to violations observed during the bank's financial year ending March 31, 2025.
What to do with a filing like this
DCB Bank Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by DCB Bank Limited. Read the original for the full detail.