RBI fines Mumbai bank for levying extra charge on ATM cards

The RBI has slapped a advantageous of Rs 13.3 lakh on SVC Co-operative Bank Ltd., Mumbai because it was imposing annual upkeep fees for ATM cards in Basic Savings Bank Deposit Accounts in violation of the central bank’s instructions.

The statutory inspection of the bank carried out by the RBI on the subject of its monetary place as on March 31, 2021, and examination of the Risk Assessment Report, Inspection Report and all correspondence associated thereto revealed, inter alia, that the bank had imposed annual upkeep fees for ATM cards in Basic Savings Bank Deposit Accounts.

Consequently, a discover was issued to the bank advising it to indicate trigger as to why penalty shouldn’t be imposed on it for non-compliance with the RBI instructions, as acknowledged therein.

“After contemplating the bank’s reply to the discover and oral submissions made through the private listening to, the RBI got here to the conclusion that the charge of non-compliance with the aforesaid RBI instructions was substantiated and warranted imposition of financial penalty on the bank,” the RBI mentioned on Monday.

This motion relies on deficiency in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the bank with its clients, the RBI assertion added.

(With inputs from IANS)