Bank Locker Rules Changed: Know About RBI's Revised Guidelines Before Opting For Facility

The RBI has allowed banks to obtain a "Term Deposit", at the time of allotment of a locker which would cover three years' rent and the charges for breaking open the locker in case of such eventuality.

Bank Locker | File Image

New Delhi: If you are considering opting for a bank safety locker, then it’s important to understand the new rules that have been floated by the Reserve Bank of India (RBI). Last month, the central bank issued revised guidelines on safe deposit locker and safe custody article facility provided by banks.

The central bank observed various developments in banking and technology, consumer grievances, and feedback from banks and the Indian Banks’ Association (IBA) to issue the revised guidelines.

However, the revised instructions will get implemented from next year onwards. Those customers who do not have any banking relationship with the bank may be considered for the facilities after complying with the customer due to diligence criteria, the central bank said in a circular.

Main Features Of RBI's New Guidelines For Bank Lockers

Locker Rental Rules

In order to ensure timely payment of locker rent, the RBI has allowed banks to take a "Term Deposit", at the time of allotment of a locker. This would cover three years' rent and the charges for breaking open the locker in case of such eventuality.

Also, note that banks should not insist on such term deposits from the existing locker holders or those who have a satisfactory operative account.

Moreover, the banks will have the discretion to break open any locker following due procedure if the rent has not been paid by the customer for three years in a row.

Currently, state-owned banks charge Rs 2,000 as annual rent for a small safe deposit locker and Rs 4,000 for a medium-sized one in urban and metro areas. The annual rent for a large locker is Rs 8,000. In addition, a customer has to also pay the applicable GST.

What Will Be Banks' Responsibility

Banks have been instructed to put in place a board-approved policy outlining the responsibility owed by them for any loss or damage to the contents of the lockers due to their negligence.

"The bank shall not be liable for any damage and/or loss of contents of locker arising from natural calamities or Acts of God like earthquake, floods, lightning, and thunderstorm, or any act that is attributable to the sole fault or negligence of the customer," it said.

Banks should, however, exercise appropriate care to their locker systems to protect their premises from such catastrophes. Apart from the above rules, banks will include an additional clause in the locker agreement that will prohibit the hirer to keep anything hazardous in the locker.

Also, in case of events such as fraud by banking professionals fire or building collapse the liability of the banks has been set to 100 times the amount of the yearly rent.