RBI · Enforcement
RBI fines Arvind Sahakari Bank ₹11 lakh for rule violations
RBI penalized the bank for lending to builders for land acquisition and paying extra interest to ineligible depositors.
What changed
- RBI imposed ₹11 lakh penalty on Arvind Sahakari Bank
- Bank violated housing finance directions by lending to builders for land acquisition
- Bank breached interest rate rules by paying extra to ineligible depositors
The read
RBI fined Arvind Sahakari Bank ₹11 lakh. The bank had lent to builders for land acquisition and paid extra interest to ineligible depositors, flouting housing finance and deposit rate rules. The penalty, dated July 16, 2026, followed an inspection as of March 31, 2025. It signals RBI's intolerance for non-compliance among smaller banks.
Key numbers
- Penalty amount: ₹11 lakh
- Inspection date: March 31, 2025
- Penalty order date: July 16, 2026
Primary source: rbi.org.in