The Reserve Bank of India (RBI) has mandated a phased renewal process for bank locker agreements, with a deadline of December 31, 2023. Account holders who have submitted a bank locker agreement on or before December 31, 2022, will need to sign a revised agreement and submit it to their respective bank branches.
Renewal process and responsibilities of banks
To facilitate the execution of fresh or supplementary stamped agreements, banks are required to take necessary measures such as arranging stamp papers, electronic execution of agreements, franking, e-stamping etc. Banks will also provide a copy of the executed agreement to the customer.
At the time of locker allotment, banks enter into an agreement with the customer, which is then signed by both parties. The bank retains the original agreement at the branch where the locker is situated, while furnishing a duplicate copy to the locker hirer.
Safety and security measures
According to the RBI, it is the responsibility of banks to ensure the safety and security of the premises where the safe deposit vaults are housed. Banks must take all necessary steps to prevent incidents such as fire, theft, burglary, robbery, dacoity, and building collapse caused by their own shortcomings, negligence, or any act of omission/commission.
Liability for damage
Banks are not liable for any damage or loss of contents in a locker due to natural calamities or acts of God, such as floods, thunderstorms, earthquakes and lightning. However, banks are expected to exercise appropriate care in protecting their locker systems from such catastrophes. The customer will be responsible for any loss or damage to the contents of the locker if it is due to their fault or negligence, said RBI.
Compensation and customer rights
In cases where banks are found responsible for any loss or damage to the contents of a locker, they are obliged to compensate the customer. It is the bank’s duty to ensure the safety and security of the lockers and the premises in which they are housed. The customer has the right to be informed of their rights and responsibilities through the signed locker agreement, the RBI stated.
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Published: 14 Dec 2023, 10:39 AM IST