Monetary Penalty on Arvind Sahakari Bank Ltd., Katol, Maharashtra
RBI press-release 2026-2027/744 · 23 Jul 2026
Official title
RBI imposes monetary penalty on Arvind Sahakari Bank Ltd., Katol, Maharashtra
RBI press-release 2026-2027/744 · 23 Jul 2026
Official title
RBI imposes monetary penalty on Arvind Sahakari Bank Ltd., Katol, Maharashtra
Summary
Check the official recordThe Reserve Bank of India has imposed a monetary penalty of ₹11 lakh on Arvind Sahakari Bank Ltd., Katol, Maharashtra, for non-compliance with regulatory directions regarding 'Housing Finance for UCBs' and 'Interest Rate on Deposits'. The penalty follows a statutory inspection of the bank's financial position as of March 31, 2025. The RBI determined that the bank sanctioned loans to builders or contractors for land acquisition and paid additional interest to ineligible depositors. This action was taken under the Banking Regulation Act, 1949, following a show-cause notice and personal hearing process. The penalty is based on regulatory compliance deficiencies and does not affect the validity of the bank's transactions with its customers.
Key dates
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Thresholds
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July 23, 2026
RBI imposes monetary penalty on Arvind Sahakari Bank Ltd., Katol, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated July 16, 2026, imposed a monetary penalty of ₹11 lakh (Rupees Eleven Lakh only) on Arvind Sahakari Bank Ltd., Katol, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Housing Finance for UCBs’ and ‘Interest Rate on Deposits’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non- compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had: i. sanctioned loans to builders / contractors, for acquisition of land; and ii. paid additional interest to certain ineligible depositors.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj) Press Release: 2026-2027/744 Chief General Manager
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ǐरज़वर् बैंक
RESERVE BANK OF INDIA
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