India, July 24 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 11 lakh on Arvind Sahakari Bank Ltd., Katol, Maharashtra, for non-compliance with regulatory directions relating to housing finance for urban co-operative banks (UCBs) and interest rates on deposits.
The penalty, imposed through an order dated July 16, 2026, follows RBI's statutory inspection of the bank based on its financial position as of March 31, 2025. After reviewing the inspection findings, the bank's written response, additional submissions, and oral representations during a personal hearing, the central bank concluded that the violations warranted regulatory action.
According to the RBI, the bank had sanctioned loans to builders and contractors...