Bank Locker Rules: Before purchasing a bank locker, it’s important to carefully review all terms, charges, and conditions of the agreement. In addition to rent, banks charge separate fees for registration, additional visits, and lost keys.
Furthermore, in cases where the loss is due to the bank’s fault, not the customer’s negligence, the bank is responsible for compensating up to 100 times the locker rent.
For those who want to keep their valuable jewelry, documents, or property papers safe in a bank locker, knowing the locker rent amount isn’t enough. Banks also impose additional terms and fees on your locker, which are important to know about beforehand, as this could lead to financial losses later.
Annual rent and contract terms
The annual rent for a bank locker facility depends on the size of the locker and the location of the branch. This fee is required to be paid in advance at the beginning of each financial year. Banks are required to provide customers with a signed copy of the locker agreement, which outlines their rights and responsibilities.
Additional charges on lockers
Many customers only consider the annual rent, but banks also charge additional fees. These include:
– One-time registration charge, which is levied at the time of locker allotment to cover the cost of documentation and administration.
– Each customer is allowed to open their locker a limited number of times. Exceeding this limit incurs an additional visit charge.
– If the annual rent is not paid on time, the bank charges a late fee (overdue penalty).
In the event of a lost key or non-payment of rent, a separate fee applies for breaking open the locker and installing a new key. According to HDFC Bank, this is done by an authorized vendor in the presence of a bank official and the customer.
Terms of Term Deposit
Many banks ask customers for a term deposit (FD) when providing a locker, covering three years’ rent and the cost of breaking the locker. However, SBI’s policy is not to require this FD from those with a satisfactory account or long-standing customers.
Certain criteria have been set for this. The account must be KYC-compliant, active for the past three years, and have an average balance equivalent to two years’ rent. Employees and VIP customers are also exempt from this requirement.
Responsibility of the bank in case of loss
If a theft, robbery, fire, or building collapse occurs at a branch due to the bank’s fault or the negligence of its employees, the customer will be compensated. In such cases, the bank is responsible for paying compensation up to one hundred times the annual locker rent.
Therefore, before signing a locker agreement with any bank, it is very important to carefully read every fee, condition and security rule so that you do not face any financial shock in the future.
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