Document title: RBI imposes monetary penalty on Arvind Sahakari Bank Ltd., Katol, Maharashtra
Issuing authority: Reserve Bank of India
Reference: Press Release: 2026-2027/744
Date: 23 July 2026
Banking and Credit
The RBI penalty of ₹11 lakh stems from the bank’s sanctioning of loans to builders and contractors for land acquisition and from paying additional interest to certain ineligible depositors, actions that contravene RBI directions on “Housing Finance for UCBs” and “Interest Rate on Deposits”.
Regulatory and Policy Measures
A statutory inspection of the bank’s financial position as of 31 Mar 2025 was undertaken. Following a show‑cause notice, the bank’s written reply, further submissions and an oral hearing, RBI found the cited charges sustained and imposed the monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The penalty is imposed without prejudice to any additional regulatory action.
The RBI’s action underscores its enforcement of compliance with housing‑finance and deposit‑interest guidelines for urban cooperative banks.