The deadline to sign a revised agreement for safe deposit locker holders is 31 December, 2023.
Reserve Bank of India (RBI) has asked banks to sign an updated agreement with bank locker holders.
The RBI initially mandated banks to update safe deposit locker agreements with customers by 1st January 2023. However, due to a large number of customers not complying and facing difficulties, the RBI extended the deadline to 31 December 2023.
It has come to the notice of the Reserve Bank that a large number of customers are yet to execute the revised agreement and are facing difficulties in doing the same. In many cases, the banks are yet to inform the customers about the need for renewal of agreements before 1st January 2023,” said the RBI notification dated January 23, 2023.
The notification further mentioned that there is a need for revision in the Model Agreement drafted by the Indian Banks’ Association (IBA) to fully comply with the instructions
Citing these reasons the central bank instructed banks to update locker agreements with their customers by December 31, 2023. They were asked to inform customers of the changes by April 30, 2023, and ensure that 50% and 75% of customers execute the revised agreements by 30 June and 30 September 2023.
How to check if your bank agreement is updated?
The RBI has asked banks the fresh/supplementary stamped agreements with their customers by taking measures such as arranging stamp papers, franking, electronic execution of agreements, e-stamping, etc. and providing a copy of the executed agreement to the customer. While the RBI has instructed banks to execute the revised agreement, here is what locker holders can do:
While banks are sending notifications regarding renewals of agreements, you can call your bank’s customer service line or visit your branch in person and ask about the status of your agreement.
Banks have also been instructed to put information about their agreements and renewal processes on their websites. You can search for your specific bank their revised locker agreement. SBI, HDFC Bank, ICICI Bank and others have put their revised agreement on the website.
Many banks now offer online access to view accounts and agreements. In the case of locker agreements, Indian Bank specifies that only the primary locker holder can initiate the agreement request. Locker holders need to ensure that their details align with their Aadhaar information. The primary locker holder needs to upload recent photographs of all locker holders in JPG format within 100 KB. After initiation, as per the Indian Bank guidelines locker holders must coordinate with their home branch, with contact numbers provided, for the completion of the process.
Under the new guidelines on safe deposit lockers, the RBI has barred customers from keeping anything illegal or any hazardous substance in the Safe Deposit locker. If the bank suspects the deposit of any illegal or hazardous substance by any customer in the safe deposit locker, the bank shall have the right to take appropriate action against such customer as it deems fit and proper in the circumstances.
Further, banks are mandated by the RBI to take necessary measures for the safety and security of premises housing safe deposit vaults.
Banks are also accountable for preventing incidents such as fire, theft, robbery, dacoity, and building collapse on their premises, ensuring they are not caused by their negligence or shortcomings.
Banks will also be liable for loss due to specified incidents or employee fraud. In such cases, the bank’s liability is capped at one hundred times the prevailing annual rent of the safe deposit locker.
Banks are required to send email and SMS alerts to customers’ registered email and mobile numbers, confirming the date and time of locker operations, along with details of the redressal mechanism for unauthorised locker access.
Banks are not liable for damage or loss of locker contents arising from natural calamities or acts of God. However, they must exercise appropriate care in protecting their locker systems from such catastrophes.