The Reserve Bank of India (RBI) has directed banks in the country to renew their locker agreements with their existing locker customers by January 1, 2023.
It has announced that all existing locker customers will be required to sign a renewal agreement before January 1, 2023 to demonstrate their eligibility for a new locker.
The revised guidelines were first published on August 8, 2021. It came into effect from 1st January 2022.
In this case, banks have to renew locker contracts with existing locker customers by January 1, 2023.
According to a notification issued by the Reserve Bank of India, banks should ensure that no unfair terms or conditions are included in their locker agreements. By January 1, 2023, all banks must renew locker contracts with existing bank locker customers and provide proof of eligibility. It has advised that the new locker rules should be implemented from that date.
When banks allot a locker to a customer, the customer should sign the agreement on bank stamped paper and a copy of the agreement letter should be kept with the customer and at the branch of the originating bank.
Banks should take adequate measures to protect lockers. Banks are advised by RBI to make it compulsory to preserve the recording of CCTV cameras at the entrance and exit of locker room and common areas of the bank for at least 180 days.
Also, banks should ensure that their locker agreements do not include any “unfair terms or conditions” in their locker agreements. Also the revised guidelines state that the terms of the agreement shall not be more stringent than what is required in the ordinary course of business to protect the interests of the bank.
According to the guidelines, if any customer complains to the bank that his locker has been opened without permission or authority, or reports a theft or security breach, banks must preserve the CCTV footage till the police investigation.
Banks are liable for any loss or damage to items in the safety deposit box due to the bank’s negligence.
Banks should include in their agreement with customers not to keep illegal objects or dangerous devices in lockers.
Banks may provide locker facility to the existing customers of the bank who apply for locker facility and provide full compliance with CCD norms. Also, the bank may provide locker facility not only to its customer but also to other customer not related to the bank.
Banks should publish branch-wise details of vacant lockers openly on their website.
Customers whose lockers are not available should be given a registration number for the waiting period.
In case of any event like bank merger, transfer of bank branch to another location and closure of bank branch, banks should publish the news in two newspapers including local newspaper. Information about this should be notified at least two months in advance.
Banks can accept upfront deposits for three years from locker customers. Banks also have the power to break their lockers if they do not pay locker rent for three consecutive years.
If valuables stored in bank lockers are stolen or lost by bank employees, fire or building collapse and the locker is damaged, the customer will be compensated up to 100 times the bank charges.
However, RBI said that the bank will not be responsible for any damage or loss of the items in the lockers due to natural calamities like earthquake, flood, lightning, storm or negligence of the customers.