Case Brief
What Happened
RBI imposed a monetary penalty of ₹11 lakh on Arvind Sahakari Bank Ltd., Katol, Maharashtra for non-compliance with certain RBI directions on 'Housing Finance for UCBs' and 'Interest Rate on Deposits'. After a statutory inspection and show-cause process, RBI found that the bank had sanctioned loans to builders/contractors for acquisition of land and had paid additional interest to certain ineligible depositors, in breach of the applicable directions under the Banking Regulation Act, 1949.