8 Important Rules For Bank Lockers You Need to Know

If you’re thinking about getting a bank locker, you should be aware of the new laws that went into effect on January 1, 2022. The Reserve Bank of India (RBI) amended its standards on safe deposit locker and secure custody item services given by banks in September. “The updated instructions will take effect on 1 January 2022 (unless otherwise indicated) and will apply to both new and existing safe deposit lockers as well as the secure custody of articles facility with the banks,” the central bank stated in a notice.

The RBI has permitted banks to take “Term Deposits” at the time of locker allotment. This would pay three years’ rent as well as the costs of breaking into the locker in the event of such an occurrence. Banks, on the other hand, should not require such Term Deposits from current locker holders or those with a suitable functioning account, it stated.

Bank lockers are frequently used to store valuables such as jewellery and real estate documents. But what if your belongings in a bank locker are misplaced? Previously, banks were not liable for the loss of anything in your locker, and you could not sue them for financial damages. Several accounts have surfaced of thefts at banks where lockers were broken into, yet customers renting the lockers were not paid for their losses. To address this, the RBI recently issued a new regulation allowing locker holders to seek compensation.

However, the new rules state unequivocally that the bank’s obligation is limited to 100 times the yearly fee of the locker if the contents of the locker are lost owing to staff carelessness or fraud, fire, theft, robbery, building collapse, and so on. However, banks are not liable if the contents of the lockers are lost or destroyed as a result of natural disasters like as earthquakes, floods, or thunderstorms.

In a step that will benefit bank customers, the RBI has made it essential for banks to satisfy claims of dead lockers, hirers, and release contents of the locker to survivor(s)/nominee(s) within 15 days of receipt of the claim. This is subject to the bank’s acceptance of documentation of the depositor’s death and appropriate identification of the claimant(s) with reference to the nomination.

Bank lockers can be held in joint names, and there is also a nomination facility. As a result, in the case of the first holder’s death or incapacity, the joint holder can access and operate the locker. If both holders pass away, the nominee can gain access to the locker by submitting the required documents with the claims form.

To protect customers from bankers’ corrupt practices as a result of high demand for lockers and a lack of transparency in the locker allotment process, the new rules require banks to keep a branch-by-branch list of vacant lockers electronically on the Core Banking System (CBS) or any other mechanism issued by the RBI.

In addition, if the locker is unavailable, the customer must be given a wait-list number, and the bank cannot refuse any locker application.

The bank is required to give you SMS and email notifications on the same day you visited the locker. Alerts will also be received if the locker is not properly locked or if the bank is forced to access the locker for any legitimate reason. This would assist to keep unauthorized people out of the locker.

According to the new laws, banks must install CCTV cameras in the locker room and store the film of the activities for 180 days. They may also install an Access Control System, which will generate a digital record of the access, as well as a time log, if necessary.

All existing bank locker clients must sign new locker agreements by January 1, 2023. All of these revised Bank Locker Rules will be included in the new agreement. This must be authorized by the bank’s board of directors. The Indian Banking Association will produce a model agreement (IBA). You will be given a duplicate copy of this agreement, and the original will be retained at the branch where the locker is situated.

The bank must publish the model agreement, as well as amended terms and conditions and Standard Operating Procedures (SOPs) for bank locker operations, on their website. Furthermore, they must show a list of branches where lockers are accessible as well as the specifics.

If you want to close the locker, you must fill out the locker surrender form, remove all of the items of the locker, and return the key to the bank. The locker arrangement would be dissolved, and any advance rent paid at the time of assignment would be reimbursed.