Bank locker update: News rules to take effect on THIS date, check revised rent, compensation

The Reserve Bank of India (RBI) has announced that, beginning on January 1, 2023, all major banks in the country must comply with new locker regulations and provide locker agreements to their respective holders. Revisions to the RBI's standards were first published on August 8, 2021, with the new rules taking effect on January 1, 2022. All current locker tenants are required to provide proof of eligibility for a renewed locker arrangement and sign a renewal agreement by January 1, 2023.

The Reserve Bank of India (RBI) has mandated that all banks provide updated locker agreements to customers who use safe deposit lockers. The Central Bank has instructed all Lenders to utilise the IBA-drafted Model Locker Agreement, which is said to be in accordance with the most recent Guidelines and the Supreme Court's Orders.

As per the 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”.

If clients' possessions are stolen from the bank or damaged in a fire or building collapse, the bank can compensate them for up to one hundred times the fees they paid.

The Reserve Bank of India (RBI) has mandated that all banks equip their safe deposit areas with CCTV cameras. The Reserve Bank of India has also mandated that bank CCTV footage be stored for a minimum of 180 days. When comparing results, this will be a useful tool.

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SMS alerts
The Reserve Bank of India (RBI) issued a directive requiring all financial institutions to notify consumers through SMS and email if they get access to their lockers. As a result of this warning, clients will be safer from fraudulent activities.

Rent of locker
As per the RBI guidelines, the banks can now demand a term deposit at the time of allocation of a locker that would be taken as the rent for three years. However, for the existing locker holders, banks cannot insist on such Term Deposits or from those who have satisfactory operative accounts.

Bank locker guidelines
Locker restrictions will change as of January 1, 2023, therefore if a bank client wants to rent a locker or is currently using one, they should sign a locker agreement with the bank before then.