The Reserve Bank of India (RBI) has imposed a fine of ₹3.3 lakh on SVC Co-operative Bank Ltd, located in Mumbai. The bank was found in violation of RBI’s guidelines for imposing annual maintenance charges on ATM cards in Basic Savings Bank Deposit Accounts (BSBDA).
The inspection and risk assessment report conducted by RBI on March 31, 2021, in the context of the bank’s financial status, along with the inspection report and related investigations, revealed that the bank had levied annual maintenance charges for ATM cards in Basic Savings Bank Deposit Accounts.
Consequently, a notice was issued to the bank, requesting it to explain why a penalty should not be imposed for non-compliance with RBI’s guidelines. After considering the bank’s response to the notice, RBI concluded that the bank had indeed violated RBI’s directives, necessitating the imposition of a penalty.
RBI’s statement indicates that this action is based on regulatory non-compliance and is not intended to affect the validity of any transactions or agreements made by the bank with its customers.
