Mumbai, Oct 23 (IANS): The RBI has slapped a fine of Rs 13.3 lakh on SVC Co-operative Bank Ltd., Mumbai as it was imposing annual maintenance charges for ATM cards in Basic Savings Bank Deposit Accounts in violation of the central bank’s directions.

The statutory inspection of the bank conducted by the RBI with reference to its financial position as on March 31, 2021, and examination of the Risk Assessment Report, Inspection Report and all correspondence related thereto revealed, inter alia, that the bank had imposed annual maintenance charges for ATM cards in Basic Savings Bank Deposit Accounts.

Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the RBI directions, as stated therein.

"After considering the bank’s reply to the notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank,” the RBI said on Monday.

This action is based on deficiency 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, the RBI statement added.