Case Brief
By order dated March 13, 2024, RBI imposed a monetary penalty of Rs 63,60,000 on DCB Bank Ltd. The penalty was issued under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, following supervisory inspection findings of non-compliance with RBI directions on interest rate on advances. RBI said the bank failed to reset interest rates at the prescribed periodicity for certain MCLR-linked floating-rate advances and failed to benchmark certain floating-rate retail loans and loans to MSMEs to an external benchmark lending rate.
Action Snapshot
- Primary Impact
- Fine: Rs 63.6 L
- Entity Type
- Bank
- Action Type
- Monetary penalty