Bank locker rules changing from January 1, 2023: Check revised rent, nominee, compensation, essential guidelines for locker holders

Bank locker rules: If you plan to rent a locker or already use a bank locker, then you will have to sign the locker agreement with the banks before January 1, 2023, as the locker rules will change from that date forward. 

Customers are receiving alerts and messages from banks like Punjab National Bank (PNB) regarding the locker agreement. The notification issued to consumers by PNB, says: "As per RBI guidelines, the new locker agreement is to be executed before December 31, 2022. Please confirm if not already done – Team PNB."

RBI had announced revised guidelines on August 8, 2021, which became effective from January 1, 2022. Locker owners must now display their eligibility for a new locker arrangement and sign a renewal agreement prior to January 1, 2023.

Updated RBI Guidelines

As per RBI's revised guidelines, "Banks shall ensure that any unfair terms or conditions are not incorporated in their locker agreements. Further, the terms of the contract shall not be more onerous than required in the ordinary course of business to safeguard the interests of the bank. Banks shall renew their locker agreements with existing locker customers by January 1, 2023".

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What is Locker Agreement?

According to PNB's policy on locker agreements, when a customer is given a locker, the bank and the customer in question engage in an agreement on a stamp paper. The locker hirer receives a copy of the signed locker agreement so they are aware of their rights and obligations. The bank branch, where the consumer receives locker facility, has the original copy of the contract.

Here are the updated guidelines for bank locker users, as stated in the RBI notification —

When does the bank compensate customers?

According to the RBI notification, "It is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed. It has the responsibility to ensure that incidents like fire, theft/ burglary/ robbery, dacoity, building collapse do not occur in the bank's premises due to its own shortcomings, negligence and by any act of omission/commission. As banks cannot claim that they bear no liability towards their customers for loss of contents of the locker, in instances where the loss of contents of the locker are due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks' liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker."

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When is the bank not liable for compensation?

"As banks cannot claim that they bear no liability towards their customers for loss of contents of the locker, in instances where the loss of contents of the locker are due to incidents (like fire, theft/ burglary/ robbery, dacoity,) or attributable to fraud committed by its employee(s), the banks' liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker", it added.

On death of the locker holder

If the sole locker holder names a beneficiary to receive the contents of the locker in the event of death, the bank will confirm the account holder's death certificate and the nominee's identity after taking a list in the manner prescribed. Once satisfied, the bank will grant permission to the nominee to ttake the locker's contents.

SMS alerts and e-mails

To notify locker usage, the bank sends an e-mail or SMS every time a locker is accessed. The banks sends these messages as confirmation to the customer's registered email address and mobile number. The locker holder is informed of the date, time, and potential solutions in case of unlawful locker entry through such alerts. The main goal of such alerts is to prevent fraud.

Rent of Locker

According to the RBI, banks are permitted to demand a term deposit at the time of allocation that would cover three years of rent, as well as the costs associated with opening the locker in the event of an emergency.

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