**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹29.60 lakh on DCB Bank Limited, effective February 6, 2026, due to non-compliance with certain RBI directions on gold loans for non-agricultural uses. This action is based on the findings of the Statutory Inspection for Supervisory Evaluation (ISE 2025) with reference to the bank's financial position as of March 31, 2025. The press release is dated February 13, 2026.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹29.60 lakh on DCB Bank Limited.
* The penalty was ordered on February 6, 2026.
* **Reason for Penalty:**
* Non-compliance with RBI directions on loans against gold for non-agricultural uses.
* Specifically, failure to maintain the prescribed loan-to-value (LTV) ratio in certain non-agricultural gold loan accounts.
* **RBI Authority:**
* The penalty is imposed under the powers conferred by section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
* **Inspection Details:**
* The Statutory Inspection for Supervisory Evaluation (ISE 2025) was conducted with reference to the bank's financial position as on March 31, 2025.
* **RBI's Stance:**
* The action is based on deficiencies in statutory compliance.
* The penalty does not pronounce upon the validity of any transaction or agreement between the bank and its customers.
* The penalty is without prejudice to any other action that RBI may initiate against the bank.
**Impact Analysis**
**DCB Bank Limited**
* **Impact:**
* Financial penalty of ₹29.60 lakh.
* Potential reputational damage.
* Risk of further regulatory actions.
* **Action Required:**
* Pay the monetary penalty.
* Improve compliance with RBI directions on gold loans, particularly regarding LTV ratios.
* Address the deficiencies identified during the ISE 2025 inspection.
**RBI**
* **Impact:**
* Ensuring compliance and maintaining stability in the banking sector.
* Demonstrating regulatory oversight and enforcement.
* **Action Required:**
* Monitor DCB Bank's compliance improvements.
* Potentially initiate further action if non-compliance continues.
**DCB Bank Customers**
* **Impact:**
* No direct impact. The penalty does not affect existing transactions.
* **Action Required:**
* No action required.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed monetary penalty.
DCB Bank Limited: Entity on which monetary penalty was imposed.
Banking Regulation Act, 1949: Act under which penalty was imposed. Specifically, sections 47A(1)(c) and 46(4)(i) were invoked.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 13, 2026
RBI imposes monetary penalty on DCB Bank Limited
The Reserve Bank of India (RBI) has, by an order dated February 06, 2026,
imposed a monetary penalty of ₹29.60 lakh (Rupees Twenty Nine Lakh Sixty
Thousand only) on DCB Bank Limited (the bank) for non-compliance with certain
directions issued by RBI on loans extended against pledge of gold ornaments and
jewellery for non-agricultural end uses. This penalty has been imposed in exercise of
powers conferred on RBI under the provisions of section 47A(1)(c) read with section
46(4)(i) of the Banking Regulation Act, 1949.
The Statutory Inspection for Supervisory Evaluation (ISE 2025) of the bank was
conducted by RBI with reference to its financial position as on March 31, 2025.
Based on the supervisory findings of non-compliance with the provisions of RBI, a
notice was issued to the bank advising it to show cause as to why penalty should not
be imposed on it for its failure to comply with the said provisions of RBI.
After considering the bank’s reply to the notice, additional submissions made by it
and oral submissions made during the personal hearing, RBI found that the following
charge against the bank was sustained, warranting imposition of monetary penalty:
The bank failed to maintain the prescribed loan-to-value (LTV) ratio in certain non-
agricultural gold loan accounts during the tenure of such loans.
The action is based on deficiencies in statutory compliance and is not intended to
pronounce upon the validity of any transaction or agreement entered into by the bank
with its customers. Further, imposition of monetary penalty is without prejudice to any
other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/2115 Chief General Manager