New Bank Locker Agreement

Subject : Economy

Section :Monetary Policy

Concept :

RBI has extended the deadline for banks to renew locker agreements with existing locker customers in a phased manner to December 31, 2023.

Background

A New Bank Locker Rule has come into effect from January 1, 2023, according to a Reserve Bank of India (RBI) notification.
Over the past few days, many Banks have sent text messages to customers to renew their safe deposit locker agreements. As part of this, existing locker depositors were required to furnish proof of eligibility for a renewed locker arrangement.
Additionally, they were required to sign a renewal agreement by December 31, 2022.
RBI has asked banks to inform all their existing locker customers about the renewal requirement by April 30, 2023.
Banks will have to ensure that at least 50 percent of their existing locker customers have renewed agreements by June 30 and 75 percent by September 30, 2023.

What is locker agreement?

At the time of allotment of the locker to a customer, the bank shall enter into an agreement with the customer to whom the locker facility is provided, on a paper duly stamped.
A copy of the locker agreement in duplicate signed by both parties shall be furnished to the locker- hirer to know his/her rights and responsibilities.
Original Agreement shall be retained with the bank’s branch where the locker is situated.

New Rules

Before the end of the day, banks must send an email and SMS alert to the customer’s registered email address and mobile number as confirmation, informing them of the date, time, and potential recourse in the event of unauthorised locker access.
Banks will be eligible to pay in case of any loss of locker content resulting from the bank’s negligence, according to the new RBI standards.
The bank will not be liable for any damage or loss of locker contents caused by natural calamities or acts of God such as earthquakes, floods, lightning, or thunderstorms, or any act attributable to the customer’s sole fault or negligence, according to the revised guidelines.
To ensure prompt payment of locker rent, banks are allowed to obtain a Term Deposit, at the time of allotment, which would cover three years’ rent and the charges for breaking open the locker in case of such eventuality.