What are the new guidelines unveiled by RBI for bank locker users? Pankaj Mathpal explains

“This revised agreement is based on the model agreement of Indian Banks Association. Basically, as per RBI guideline, the agreement has to be something which takes care of locker users as well as the banks because their responsibilities and their liabilities should be clarified,” says Pankaj Mathpal, MD, Optima Money Managers.

So what exactly has happened because just few months back we had seen bank locker owners signing revised agreement and it seems that now RBI has released some new guidelines and they have come up with new rules and new set of things especially from the bank side that they need to take care of, what is the change and why?
This revised agreement is based on the model agreement of Indian Banks Association. Basically, as per RBI guideline, the agreement has to be something which takes care of locker users as well as the banks because their responsibilities and their liabilities should be clarified. Earlier the locker user and banks, it was a different agreement means banks were custodian of the lockers but now in the revised agreement it is basically a leasing agreement so there is a are lessor and lessee. So now it is like lessee is paying rent and they are availing that facility. So as long as they keep paying rent, they can use it. So first thing is that to define the role and responsibilities and liabilities and second thing in addition to this RBI has clarified that banks because now they are no more custodian basically, they are lessor. So what can be kept in lockers, what cannot be kept, what is allowed, what is not allowed so these things are defined and I think it is in the interest of both because once the responsibilities, liabilities are set, so there are lesser chances of dispute between users and banks. So has there been an incident that triggered this because what has been reported is that some bank inadvertently opened a customer’s locker and that is how the issue came into light. What is the story?
See exactly what happens is that if for example, customer has not paid rent for a long time then banks can open the locker as they had this power. But now they can open the locker but only in the presence of customer that has been clarified in this.

So if they have any doubt that any un-allowed things have been kept in the locker because lockers are meant only for jewellery and documents. So cash or any illegal things or drugs etc. are not allowed though means ethically it was never allowed but it is now specifically mentioned in the agreement that what is allowed and what is not allowed. So in such case if bank has any doubt on any activity, so in that case in the presence of customer, they can inspect the locker. So basically these things are there that which things have been clarified in the agreement that is it.

All right. Now, let us just take it step by step looking at the new guidelines which have been introduced in the revised agreement. Let us talk about the safety. In fact, greater aspect of safety that is in focus when it comes to the new revised agreement. So the banks will be liable for how many things and what kind of losses exactly?
See, I will tell you very clearly it is mentioned there in the agreement that banks will take utmost care to safeguard the interest of locker user but beyond that they are not responsible. For example, see if the bank is insured for that matter and property is damaged, that locker is, means there is a theft or fire or any kind of risk. So that risk is on the insurance company that may be there but bank’s responsibility to safeguard the things beyond that they are not responsible.

One more thing I want to understand is what exactly a bank locker holder needs to do now? They will have to go to the physical branch of the bank and that is how you get it signed or you can do it online as well?
No, no, you cannot do it online. Definitely, you have to sign the agreement which has to be on a stamp paper or ranking should be done on the paper. And second thing here that is important because although the deadline is 31st December 2023 but RBI has asked the banks that at least 50% of the locker user should sign the agreement before 30th of June and at least 75% of the customers should complete this process by 30th of September and 100% by 31st December.

So that is why these days these locker users are getting SMSs or calls from the banks to complete this process because as I said 30th June is approaching and 50% work has to be completed before that and as I said that one has to go to bank, collect the form and on that ranking has to be done because most of the banks they are giving a format and then it has to be typed in the stamp paper or the ranking has to be done on that and need to be submitted after signing by the locker users.

How about the rent that will be deducted?
See rent is always the same thing that you have a bank account in the same bank and from your account that amount is debited and second thing banks usually collect a small FD also against that locker in case there is no sufficient balance in your account in that case that FD can be foreclosed and amount can be recovered even sometime for making a duplicate keys or breaking the locker that FD helps. So in that way they want to secure it but ultimately that money is usually debited from your saving account which is linked to that locker.