The BuyT Desk
The Reserve Bank Of India issued new guidelines for the operations of bank lockers. These new guidelines will be applicable for the existing old lockers and the new ones as well. Banks have been asked to formalise and implement the new rules from 1st January 2022. The main reason behind these new rules is to make the banks more accountable. RBI said in its notification – “It is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed. It has the responsibility to ensure that incidents like fire, theft/ burglary/ robbery, dacoity, building collapse do not occur in the bank’s premises due to its own shortcomings, negligence and by any act of omission/commission.”
This is what RBI wants from banks –
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Transparency in Locker Allotment: Banks must have a branch-wise list of available/vacant lockers. In case an applicant has not been allotted a locker when he/she applies their name will be enlisted in a waiting list. They should create a waiting list for customers and let them know about the availability in a transparent manner. The waiting list and the vacant locker list must be shared with the core banking system.
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Locker For Non- Account holders: Now banks are allowed to give locker facilities to non-account holders as well. But with utmost due diligence, the bank must complete the Know Your Customer(KYC) formality with the necessary documents.
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Bank’s Liability: In case the locker is damaged due to a breach in security or an incident like a fire or flood the bank will have to prove that it was not due to their shortcoming. If a bank is found to be negligent on their part then banks will pay 100 times the rent of the locker as compensation to the customer.
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Locker Rent: Banks are allowed to take 3 years rent of the locker at one go in the form of a term deposit. But they can’t force the customer to take this. It will be up to the customer’s prerogative as to whether he/she wants to make the rent payment at one go or not.
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Act of God: If the locker is damaged due to an unforeseen calamity then it will be considered to be an act of God and the customer will not be getting any compensation.
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Safe Deposit Locker Agreement: The new guideline will be implemented from 1st January 2022. This will be applicable to all the new safe deposit lockers. The existing locker holder will have to sign a new agreement and that should be completed by 1st January 2023. RBI’s statement said “Banks shall ensure that any unfair terms or conditions are not incorporated in their locker agreements. Further, the terms of the contract shall not be more onerous than required in the ordinary course of business to safeguard the interests of the bank. Banks shall renew their locker agreements with existing locker customers by January 1, 2023.”
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Locker Keys: Banks have to ensure that the keys of the locker are embossed with the identification code of the bank. In case the law enforcement agencies or the bank wants to access the locker it could easily identify the locker credentials.
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Content of Locker: Banks should incorporate a clause in the agreement that the locker holder will not keep anything illegal or hazardous in the safe deposit locker. If customers do not adhere to this banks are free to take action as they deem fit.
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Nomination: The locker hirer must clearly fill the nomination column or specify if it will be an either-or survivor holding. In case of the death of the locker hirer, the content of the locker will be dealt with accordingly. Either the content will be given to the nominee or the safe deposit will be transferred to the survivor.
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Updated Information: If you have a safe deposit locker or are planning to open one then your banks will be asking you for recent passport size photographs of locker-hirer and individual authorised by locker hirer to operate the locker. This will be preserved by the bank in the records for future req
