Citigroup Inc said it will charge fees for deposit and checking accounts that are small or inactive, joining a growing list of U.S. banks altering their consumer banking operations as the industry adapts to new regulations.

Citigroup said on Friday it will charge a monthly service fee of $10 on basic checking accounts. The fee can be waived if a customer completes one direct deposit and one online bill payment per month, or maintains a combined balance of $1,500 in checking and savings accounts.

The change take effect in December.

Citigroup said it will not charge for debit card or online bill payment.

New York-based Citigroup is the latest bank to tinker with its account structures following changes in U.S. consumer banking regulations and laws over the last two years.

The new regulations -- part of a broad financial sector reform effort -- limit overdraft fees and other penalty fees banks can charge customers.

In response, to recoup lost revenues, many banks have begun introducing monthly service fees for accounts, debit card use and visits to branches.

Bank of America Corp , the largest U.S. bank by assets, introduced its own changes last year. The changes include an ebanking account, which allows customers to use ATMs and online banking for free but charges a $7 monthly fee for teller visits or receiving paper statements.

(Reporting by Joe Rauch in Charlotte, N.C.; editing by John Wallace)

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