The Reserve Bank of India (RBI) on 23 October imposed a Rs 13.30 lakh penalty on SVC Co-operative Bank for rule violations.

The penalty was imposed on the bank after the bank had imposed annual maintenance charges for ATM cards in Basic Savings Bank Deposit Accounts.

RBI had conducted a statutory inspection with reference to its financial position as of 31 March 2023, and the examination of Risk Assessment Report.

The bank has issued a notice advising it to show cause as to why a penalty should not be imposed on it for non-compliance with the directions given by RBI.

After considering the bank’s reply to the oral submissions and notice made during the personal hearing, RBI came to a decision that the charge of non-compliance with the predetermined RBI direction was substantiated and issued the imposition of penalty on the bank.

In its press release, RBI said, “This penalty has been imposed in exercise of powers conferred on RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.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.”