THE RESERVE BANK OF INDIA (RBI) has asked all banks to renew their agreements with their locker customers before January 1, 2023. This is a result of RBI’s new guidelines that came into effect on January 1, 2022.
The guidelines stated that all existing locker agreements had to be renewed by January 1, 2023. If you are an existing locker customer, you must furnish fresh proof of eligibility for a locker agreement with the bank and sign the agreement paper again.
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The agreement
The agreement between the customer and bank has to be on a stamp paper and needs to be signed and stamped, a copy of which must be given to the customer to know their rights and responsibilities.
The agreement details the terms and conditions of using the locker facility, the customer’s particulars, such as name, address, and contact number, the locker rent, the period of licence, etc.
Fixed Deposit locker rent recovery
RBI has allowed banks to obtain a Term Deposit (fixed deposit) covering three years’ rent and the charges at the time of allotment. However, banks cannot insist on such term deposits from existing locker holders or those who have satisfactory operative accounts.
Besides, if you surrender the locker after paying the rent in advance, the bank has to return the proportionate amount of advance rent collected.
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Other guidelines
In case the bank shuts down or merges with another bank or shifts the branch, it has to give a public notice in two newspapers – including one local daily in vernacular language. The bank is also supposed to intimate the customers at least two months in advance along with options for them to change or close the facility.
Security of valuables
RBI mandates that it is the bank’s responsibility to ensure the security of the safe deposit vaults. The bank is also supposed to notify customers through email and SMS every time the locker is accessed.
Should your locker contents be damaged or lost, you will be eligible to get up to 100 times the bank charges if their valuables are stolen or destroyed in a fire or building collapse. This does not include any damage or loss originating from natural calamities.
