India’s apex banking regulatory institution, the Reserve Bank of India (RBI) floated new guidelines for safe deposit locker and safe custody facilities offered by banks. The bank took the decision on August 18 citing numerous advancements in banking and technology, consumer complaints and feedback from different banks as well as the Indian Banks’ Association (IBA).
Below we have comprehensively covered the new locker guidelines for your consideration-:
Banks may witness possible situations where the locker-hirer neither manages the locker nor pays the charges. To assure timely payment of locker rent, banks are entitled to take a term deposit at the time of locker allotment. The amount will include three years of rent as well as the charges for breaking open the locker.
Banks, however, shall not ask for term deposits from the current locker holders or from those who have functioning operative accounts.
If the locker rent is taken in advance, a suitable amount of the advance amount collected will be returned to the customer. In the case of emergencies like natural calamities, banks shall make attempts to notify their customers at the earliest.
The banks shall come up with a comprehensive board approved policy detailing the liability owed by them for any damage or loss to the contents of the lockers owing to their neglect.
Locker care will involve assuring the proper working of the locker system and safeguarding against unapproved access to the lockers. Ensuring sufficient measures against robbery and theft will also be the responsibility of the bank.
As per the new provisions, a bank shall not be accountable for any harm or loss of belonging of locker due to natural calamities like earthquakes, floods etc. Banks though will adopt proper safety to ensure protection from such disasters.
Other important regulations that have been included in the revised locker policy of RBI include-:
Banks will include an additional clause in the locker agreement that will prohibit the hirer to keep anything hazardous in the locker.
In case of events like 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.
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