RBI issues new guidelines for bank lockers; details here

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The revised guidelines will come into effect from January 1, 2022. The central bank added that the new norms will apply to both new and existing safe deposit lockers.





The Reserve Bank of India (RBI) has issued revised guidelines for bank services like deposit lockers, safe custody, and article facility. The rental charge for a safe deposit locker in a bank which is to be paid upfront has increased.

It is now mandatory for banks to maintain a branch-wise list of vacant lockers as well as a wait-list for the allotment of lockers.
The revised guidelines will come into effect from January 1, 2022. The central bank added that the new norms will apply to both new and existing safe deposit lockers.
Earlier this year, the Supreme Court, while hearing the Amitabha Dasgupta vs United Bank of India, had asked the RBI to lay down regulations in six months for locker facility management.
Revised guidelines:



  • Banks can now obtain a term deposit at the time of allotment of a locker. This deposit will cover three years of rent and the charges for breaking open the locker (in case). This, the RBI says, has been done to ensure that banks do not face a situation where the locker-hirer neither operates the locker nor pays the rent. However, existing locker holders cannot be forced by the banks to pay the term deposit.



  • Banks are mandated to include a clause in the locker agreement preventing the customer from keeping anything illegal or hazardous in the locker. This comes in the wake of rising complaints of bank lockers being used to stash illegal goods and assets.
  • Banks shall enter into an agreement with the customer on a duly stamped paper at the time of allotment of the locker to a customer.
  • Banks now have the authority to break open any locker if the rent has not been paid by the customer for three years in a row.




  • Banks should ensure that no unfair terms or conditions are incorporated in their locker agreements. The locker agreements with existing customers can also be reviewed.
  • Banks shall have a board-approved policy for the settlement of claims.
  • Banks cannot be held accountable for any damage and/or loss of contents of locker arising from natural calamities or Acts of God. However, banks are required to protect lockers from such catastrophes.




  • Bank liability, for locker services, will be limited to 100 times its annual rent in case of fire, theft, building collapse, or fraud by bank employees.
  • Banks are required to acknowledge the receipt of all applications for the allotment of lockers. They also need to provide a waiting number to the customers, in case lockers are not available. Banks are also required to maintain a branch-wise list of vacant lockers.




  • Banks shall ensure a refund if a customer surrenders the locker and the locker rent was collected in advance.
  • Banks have also been asked by the RBI to take the necessary steps to prevent locker heists.
The RBI said that customers who are fully compliant with the CDD (Customer Due Diligence) may get the facilities of safe deposit lockers/safe custody articles subject to ongoing compliance. Meanwhile, those who do not have any banking relationship with the lender can hire a safe deposit locker/safe custody article after complying with the criteria under the Master Direction – Know Your Customer (KYC) Directions of 2016.




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