Six out of 10 people in India were of the opinion that banks were charging a higher than normal locker rent charge, according to a survey by the Delhi-based research company, LocalCircles.
A sizeable 14 per cent each said they planned to give up their locker and/or shift to a smaller locker, as rental had increased by 100-300 per cent, while 31 per cent even agreed to change their bank. Overall, 78 per cent people felt that the Indian banking system had become too expensive, complex or both, according to a survey by LocalCircles
Six out of 10 people in India were of the opinion that banks were charging a higher than normal locker rent charge, according to a survey by the Delhi-based research company, LocalCircles.
A huge 78 per cent respondents were also of the opinion that the Indian banking system has become either too expensive or complex or both.
The survey involved 21,000 respondents across 303 districts and included 63 per cent men.
Here are the other highlights of the survey.
14% People Want To Give Up Bank Lockers
A sizeable 14 per cent people said they planned to give up their bank locker because the charges for the same had increased by 100-300 per cent. Another 14 per cent said they planned to switch to a smaller locker, while another 31 per cent people said they proposed to shift to another bank which levied a lower charge for the locker.
However 39 per cent people said they were ready to pay extra and retain their existing lockers.
“Feedback from consumers in community discussions also indicates that in the last one year many customers have already reduced or stopped use of a bank locker,” LocalCircles said in the survey.
Majority of Consumers Think Banking In India Has Become Expensive
About 52 per cent people said that the Indian banking system had become both complex and expensive in the last five years. A small 9 per cent people said it was the same as before, while another 19 per cent people said that the banking system has now become simpler and inexpensive.
“Altogether, 78 per cent respondents felt the system has become either expensive, complex or both. Once again, the community feedback received so far on the latest compliance requirement for bank lockers clearly indicates that people are just not happy with the way banks have handled it,” the report said.
LocalCircles said in a summary note that the latest change in rules for holding a bank locker and the way banks have implemented it, “was expected to further reinforce the growing public perception that banking services had become more complex and expensive.”
Some banks were intimating their customers about 15-20 days before the January 1, 2023 deadline, while some did on December 30, 2022.
“For those travelling or out of location or those residing outside the country, i.e., non-resident Indians (NRIs ), the bank notification was a shock as there was no way for them to comply with the needful.
The last minute mobile message appears to have caught most bank locker holders by surprise, going by the consumer complaints on LocalCircles platform,” the survey said.
Earlier, in a notification on August 18, 2021, the Reserve Bank of India (RBI) had said all the bank locker agreements must follow the model drafted by the Indian Bank Association (IBA).
“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,” the notification said.