Bank lockers, also known as safe deposit lockers, are among the safest places to store valuables. Most leading banks offer the facility to their account holders at a charge. To improve transparency and strengthen deposit locker management, the Reserve Bank of India revised bank locker guidelines in Jan 2021, which were implemented for new locker holders in Jan 2022. However, the revised guidelines came into effect for existing locker holders in Jan 2023. As a result, banks must now renew locker agreements for all locker holders before Dec 31, 2023.
What is a locker agreement?
To hold a bank locker, you must enter an agreement with the bank offering the facility. The agreement, which essentially lays down the terms and charges of the locker service, is made in duplicate and must be signed by both parties – the bank and the locker renter. While the bank retains the original agreement, the locker holder is provided with a copy.
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What are the steps to renew a locker agreement?
As soon as the RBI issued the guidelines for new locker agreements, banks started notifying their customers about the same. However, initially, there wasn’t much clarity about what the renewal process entailed. Like many other locker holders, I also received a notification from my bank to renew my locker agreement, following which I visited the branch where my locker was, to enquire about the process. Here is what I was told to do:
- Procure and fill in the necessary forms to renew the agreement.
- Attach a stamp paper of the required denomination with the form. While some banks provided their customers with this document, I procured it from a local stamp paper vendor.
- Furnish originals and copies of my Aadhaar and PAN Card. The original proofs were requested for verification, while the copies were to be attached to the form.
- Provide three of my passport-sized photos to be attached to the form.
Once I had all the documents ready, I submitted them to the bank, and that was it. It is worth mentioning that in the case of joint locker holders, both holders will be required to provide their passport-sized photos and proof of identity, in original and as copies. Also, don’t forget to carry a pen with you to avoid having to hunt for one at the bank!
What are the new locker rules?
The revised locker rules have been implemented to make locker management more efficient and transparent for banks and customers. Here are some of the revised rules that have come into effect:
- Banks may ask customers to open a term deposit to cover three years of locker rent when allotting a locker.
- If a bank branch is being relocated, the bank must notify its customers about the same at least two months in advance. To this effect, they must put out notices containing relocation details in two newspapers. Moreover, the affected customers must be given a choice to relocate or close their accounts.
- If a customer, who has paid advance locker rent, surrenders their locker, the bank must return the proportionate rent amount to the customer.
- The bank will not be liable if the locker contents are damaged or lost due to the customer’s negligence or a natural calamity, such as a flood, thunderstorm, earthquake, etc.
- If the locker’s contents are damaged or lost due to the bank’s negligence, the bank will be liable to compensate the holder.
- The bank must notify locker renters about all locker access and operation-related activity via SMS or email alerts.Malvika has been writing on financial topics for nearly a decade and currently works at BankBazaar. BankBazaar is India’s largest fintech co-brand credit card issuer.
