Bank Locker Rules: RBI has directed all lenders to use the model locker agreement prepared by the Indian Banks’ Association (IBA) in line with the Supreme Court’s orders and guidelines.
Bank Locker Rules: Taking a step forward to enhance bank safety, the Reserve Bank of India (RBI) has directed banks across the country to renew their locker agreements with existing locker customers by January 1, 2023. With this move of the central bank, there will be many changes in the mandatory rules regarding the use of the locker of the bank. Since then, the customers who have lockers in different banks have also started receiving alerts and messages regarding the locker agreement. Customers have also been instructed to follow the guidelines before 31 December.
RBI instructions
The Reserve Bank of India has issued guidelines directing banks to ensure that no unfair terms or conditions are included in their locker agreements.
According to the guidelines, the terms of the agreement will be very easy and simple to secure the interests of the bank.
RBI has directed all the lenders to use the model locker agreement prepared by the Indian Banks’ Association (IBA) in line with the orders and guidelines of the Supreme Court.
All the locker holders have to sign the renewal agreement before the specified date.
CCTV will be installed
Banks have also been directed to install CCTV cameras at entry and exit points of strong rooms and general areas of operation. They have to give an assurance that the recording will be preserved for a minimum period of 180 days. If a customer has complained that their locker was entered without their knowledge or permission, or if any theft or security breach is detected, the Bank shall retain the CCTV recording until the police investigation is complete and the dispute is resolved. Will be
Recovery over product value
If valuables kept in a safe are looted or lost due to fire or building collapse, depositors can now get up to 100 times the bank charges. However, the Bank shall not be liable for any loss or damage to the contents of the Locker arising out of natural calamities or ‘acts of God’.
Banks can demand fixed deposits as rent
All lenders have been permitted to demand fixed deposit at the time of allotment of locker, which will be collected as three years’ rent. However, lenders cannot insist on such term deposits from existing locker holders or those with satisfactory operational accounts.
Bank will inform customers before any seizure
As per the new guideline, the bank will inform the customer through letter as well as email/SMS if any government authority has approached them for attachment, recovery or confiscation of the articles deposited in the locker or safe custody.
