Bank locker rules have changed from January 1,2023. This mandate was part of RBI’s directive about bank locker operations and to protect the interest of the customers. Under the new rules, customers, both existing and new, are required to enter into an agreement on a stamp duty paper with the bank. A duplicate copy of the locker agreement signed by both the parties shall be retained by the customer and will include his/her rights and responsibilities. Here is a brief look at the revised guidelines for bank lockers notified by the RBI:
- Liability: Banks will be liable to pay in case of any loss of locker content resulting from their own negligence or shortcomings. This includes incidents like fire, theft, robbery, burglary, dacoity, building collapse, employee fraud, etc. The banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker. Natural calamities such as earthquakes, floods, lighting, thunderstorms or any act attributable to the customer’s fault or negligence resulting in loss of locker content will not be compensated by the bank.
- SMS & Email Alert: Banks will send an email and SMS alert informing customers of the date and time of locker operation. This will alert customers of unauthorised locker access.
- Transparency in locker allotment: Banks will make the availability of lockers public by displaying the information on a display board within the bank. The customers should be apprised of the list of empty lockers, the waiting list for the locker, and the number on the waiting list.
- CCTV Footage: It is mandatory for banks to install CCTV to monitor the locker rooms and keep CCTV data for 180 days.
- Locker Rent: Banks can continue to recover locker rental by way of accepting term deposits. However, this should be equivalent to 3 years rent and charges for breaking open the locker in case of any eventuality. This is applicable to only new locker holders and not the existing ones with operative account.
- Keys Distinction: Banks must ensure that the bank’s / branch’s identification code is imprinted on all locker keys in order for law enforcement agencies to identify lockers and locker owners in case of an emergency.
- Transfer of content in case of death: If the account holder nominates an individual to receive the contents of the locker in the event of his death, the banks shall give such nominee access to the locker with the liberty to remove the contents after an inventory is taken in the prescribed manner, after verification of the death certificate and satisfying the identity and genuineness of such individual approached.
If you own a locker and have missed the 1st January deadline of renewing the locker agreement, check with your bank whether the deadline has been extended.