Finance

Published: June 6, 2023
Updated: June 6, 2023

"Enhancing Bank Locker Security: Why Signing the Revised Agreement Matters"

Bank locker holders have been receiving notifications from their banks urging them to sign revised locker agreements by June 30, 2023. These revised agreements aim to improve the safety of bank lockers. Experts explore the reasons behind this requirement and how it will benefit customers by enhancing the security of their lockers.

Background: The Need for Revised Locker Agreements:

The initiative for revised locker agreements arose when a bank inadvertently opened a customer's locker, resulting in the matter reaching the Supreme Court. As a result, the Reserve Bank of India (RBI) was advised to create a model locker agreement that would serve both customers and banks effectively. Subsequently, the Indian Banks' Association formulated a draft agreement, which all banks adopted in January 2022. Additional clauses were later added, leading to the sharing of a revised version with the banks in February 2023, prompting the need for customers to sign the agreement again.

Signing the Revised Locker Agreement:

To comply with the revised locker agreement, customers are required to visit the bank branch where their locker is located. Banks are exploring options for e-signing the agreement, and for joint holders in different cities, different branches are obtaining the necessary signatures and collating them at the customer's home branch. Special arrangements, such as sending bank officers to the homes of senior citizens, are being made to facilitate the signing process.

Strengthened Safety Measures for Bank Lockers:

Under the revised agreement, banks now hold liability for the loss of locker items resulting from their negligence, with exceptions for natural calamities, civil disturbances, riots, war, or terrorist attacks. Additionally, banks will be held liable for losses due to fire, eliminating the previous exemption. In cases of negligence, the bank can be held responsible for up to 100 times the annual locker rent as per the revised agreement.

Key Dates and Procedures:

Customers are requested to sign the revised locker agreement by June 30, 2023. Locker rent deductions will occur at the beginning of the fiscal year based on standing instructions from the customer's bank account. In instances where the locker holder does not have a savings account, the bank may request a fixed deposit equivalent to three years of rent and charges for breaking open a locker, if necessary.

Handling Unused Lockers:

If a locker remains unused for one year, the bank is required to send reminder messages to the customer. If the customer fails to operate the locker despite the notices, the bank has the authority to break open the locker, secure any assets inside, and put the locker to use again.

Crucial to sign the revised agreement:

Signing the revised locker agreement is essential for bank locker holders to ensure enhanced security for their valuables. The agreement holds banks accountable for losses resulting from their negligence and strengthens their liability in case of any mishaps. By complying with the revised agreement, customers can have greater confidence in the safety of their bank lockers. It is crucial for customers to take the necessary steps and sign the agreement by the specified deadline to benefit from these improved security measures.