All you need to know about revised bank locker agreements

The new bank locker rules, which will be effective from Jan 1, 2024, require banks to maintain clear waitlists for locker allocation, and enhance security measures

- MONIKA YADAV

PEOPLE from all walks of life use bank lockers to store their valuable items like jewellery and documents securely. Banks provide enhanced security measures like surveillance cameras, alarms and restricted access, reducing the risk for theft or damage.

Earlier customers often faced issues like lack of transparency in locker allotment, security concerns, and unclear liability terms for locker contents. The Reserve Bank of India (RBI) in 2021 after the Supreme Court ruling changed several guidelines with respect to bank lockers.

In 2021, a Supreme Court ruling clarified the responsibilities and liabilities of banks and their locker users. The new regulations redefine the bank-user relationship as lessor and lessee. Customers can use lockers for legitimate purposes, but storing cash, weapons, drugs, or hazardous materials is prohibited. Banks may inspect lockers if they suspect illegal substances. Customers are responsible for key/password misuse, while banks must exercise reasonable care. The new rules do not mandate higher fees, and banks will bear documentation costs.

The RBI has introduced a phased renewal process for bank locker agreements. Account holders who submitted their agreements on or before December 31, 2022, must sign a revised agreement and submit it to their bank branches by December 31, 2023.