DMCH Principal RK Sinha imposed the fine. The students have been directed to pay the penalty amount by November 25, the official added.
Failing to pay the fine would invite stern action, the college authorities said. The guardians of the 54 students have been informed.
The college authorities took the action after its Anti-Ragging Committee submitted a report. The Committee was formed on a directive of the Medical Council of India (MCI).
On November 11, a first year student of the DMCH living in the college hostel complained to the MCI about the ragging incident. She accused the senior students of repeated ragging.
"The victim complained that she was abused, beaten and mentally tortured. She alleged in her written complaint that the seniors put pressure on her for one work or another," an official said.
The MCI on November 16 directed the DMCH to take action.
Last week in a similar incident, the Jawaharlal Nehru Medical College administration in Bhagalpur had imposed Rs 25,000 fine each on 33 second-year students for ragging their juniors.
Principal Arjun Singh imposed the fine of Rs 8.25 lakh on the 33 students of the 2016 batch for ragging the 2017-batch students earlier in November.