Banks have begun reaching out to their customers as the first deadline of June 30, 2023, for revising locker agreements with them is approaching.
State Bank of India (SBI) tweeted: “We request our esteemed customers to contact their locker holding branch and execute the revised/supplementary locker agreement as applicable.”
In a circular in January this year, the Reserve Bank of India (RBI) directed banks to inform customers to revise their locker agreements in a phased manner: 50 per cent by June 30, 75 per cent by September 30, and 100 by December 31, 2023.
Banks must provide compliance reports to RBI on its DAKSH portal every month. June 30 is the first deadline, so banks are stepping up efforts to achieve the 50 per cent target.
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What Is The Change In The New Agreement?
As per the new rules, customers can keep only legitimate items in the locker. It formally rules out storing any illegal items like hazardous substances, etc. On any suspicion, the new rules give the bank the right to take ‘appropriate action’ against the customer.
It will also be liable to the customer for fire, theft, burglary, dacoity, building collapse, etc., meaning it cannot deny its responsibility for any loss or damage to the contents of the lockers. The bank is also liable if there is damage due to fraud by an employee.
The new rules stipulate that the bank’s liability in content loss cases will be ‘equivalent to one hundred times the prevailing annual rent of the safe deposit locker’.
But, the bank will not be held liable for any loss or damage to the locker content due to floods, earthquakes, and other natural calamities. Further, if the locker rent is not paid for three years, the bank can break open the locker ‘following due procedure’ after informing the customer and allowing the customer to take the locker articles.
While banks are advised to arrange stamp papers, e-stamps, etc., for the electronic execution of agreements with their customers, locker owners must also check with their banks if they have to arrange these papers to complete the process. However, as directed by RBI, everyone must revise their locker agreement with the bank before the December deadline.
