Reserve Bank of India imposes monetary penalty on DCB Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹22 lakh on DCB Bank Ltd. by order dated October 28, 2020. The penalty was for non-compliance with certain RBI directions contained in the circular on marketing/distribution of mutual fund, insurance and similar products by banks. RBI said the action followed an off-site examination related to para-banking activity in connection with the NSEL matter, and that the bank’s reply and submissions did not alter the conclusion that the violations were substantiated. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.