Document title: RBI imposes monetary penalty on Hutatma Sahakari Bank Ltd., Walva, Maharashtra
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/513
Date: June 22, 2026
Regulatory and Policy Measures
The RBI, by an order dated June 19, 2026, imposed a monetary penalty of ₹5 lakh on Hutatma Sahakari Bank Ltd., Walva, Maharashtra, for non‑compliance with RBI directions on Loans and Advances to Directors, their Relatives, and Firms/Concerns in which they are Interested. The penalty is imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank covered its financial position as of March 31, 2025. RBI’s supervisory findings identified that the bank had sanctioned a loan to a relative of its director, violating the aforementioned directions. After issuing a show‑cause notice and considering the bank’s reply and oral submissions during a personal hearing, RBI sustained the charge and imposed the penalty.
The RBI clarified that the penalty does not adjudicate the validity of the transaction and is without prejudice to any further action that may be initiated against the bank.
Chief General Manager (Brij Raj) signed the press release.