The Reserve Bank of India (RBI) has issued the revised Guidelines on safe deposit lockers and safe custody article facility provided by banks, which shall come into effect from January 1, 2022.
As per the revised guidelines for the hiring of lockers under which the liability of banks will be limited to 100 times its annual rent in case of fire, theft, building collapse or frauds by bank employees.
Now the banks will be required to incorporate a clause in the locker agreement prohibiting the hirer from keeping anything illegal or hazardous in lockers.
“The banks shall acknowledge the receipt of all applications for allotment of locker and provide a wait list number to the customers, if the lockers are not available for allotment,” as per the instructions.
Customers not having any banking relationship with the bank may be given the facilities of safe deposit locker/safe custody article after complying with customer due diligence criteria, the central bank said in a circular.
The banks will have to maintain a branch wise list of vacant lockers as well as a wait-list in core banking system (CBS) or any computerised system compliant with RBI’s norm on cyber-security framework for transparency in allotment of lockers, as per the revised guidelines.
“Banks may face potential situations where the locker-hirer neither operates the locker nor pays the rent. To ensure prompt payment of locker rent, banks are allowed to obtain a Term Deposit, at the time of allotment, which would cover three years’ rent and the charges for breaking open the locker in case of such eventuality. Banks, however, shall not insist on such Term Deposits from the existing locker holders or those who have satisfactory operative account. The packaging of allotment of locker facility with placement of term deposits beyond what is specifically permitted above will be considered as a restrictive practice,” the Apex Bank added.
The RBI directed the Banks to take necessary steps to ensure that the area in which the locker facility is housed is properly secured to prevent criminal break-ins. The risks of accessibility of an allotted locker from any side without involvement of the locker-hirer concerned may be assessed and kept on record. Banks shall have a single defined point of entry and exit to the locker room/vault. The place where the lockers are housed must be secured enough to protect against the hazard of rain / flood water entering and damaging the lockers in contingent situations. The fire hazard risks of the area should also be assessed and minimized. The banks, as per their policy, shall conduct necessary engineering / safety verification regularly to identify the risks and carry out necessary rectification.
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