75. Bank Locker New Agreement Deadline

Описание: Bank Locker New Agreement Deadline
RBI Extends Deadline for New Bank Locker Agreement

Bank lockers are quite useful when it comes to safeguarding things such as - property documents, jewellery, loan documents, savings Bonds, insurance policies, and other confidential items.

The security in banks assures us its safety.

Depending on the size of the locker and the center where the branch is located, the bank will charge an annual rent.

When a locker is assigned, a copy of the locker agreement governing its use will be given to the locker hirer. The rent should be paid in full before the start of the fiscal year.


In the agreement, one of the important clauses states that the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker in case of any liability of banks arising from events like fire, theft, burglary, dacoity, robbery, building collapse or in case of fraud committed by the employees of the bank.
Thus, making bank locker a safe choice to opt for.
The bank ensures that incidents like fire, theft/ burglary/ robbery, dacoity, building collapse do not occur in the bank’s premises due to its own shortcomings, & by any act of omission/commission.
However, banks cannot claim that they bear no liability towards their customers for the loss of contents of the locker, in instances where the loss of contents of the locker is due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker.

IN THE NEWS -

Recently, the Reserve Bank of India (RBI) extended the deadline for banks to complete the process of renewal of agreements for the existing safe deposit locker holders.

The deadline has been extended till 31st December 2023.

This means customers now can sign a new bank locker agreement by December 31, 2023.


This decision was followed after the Central Bank observed that many customers are yet to sign the revised agreement. There was a delay in signing a new agreement with their customers by January 1, 2023.
However, in many cases, the banks are yet to inform the customers about the need to do so before the stipulated date.
Hence the decision for an extension of the deadline was taken by the RBI.
The RBI further informed that where operations in lockers have been frozen for non-execution of agreement, the same needs to be unfrozen with immediate effect.
Banks have been advised to make necessary arrangements to facilitate the execution of the revised agreements by ensuring the availability of stamp papers, etc.
NOTE:
The revised rules were applicable to existing customers from January 2023 & were already in force for new customers from January 2022.
The new locker agreement says that the new agreement must not have any clauses that are unfair to the customers.
On a notification dated August 18 in the year 2021 the RBI stated the following -

The Banks shall have a Board approved agreement for safe deposit lockers.

For this purpose, banks may adopt the model locker agreement to be framed by IBA.
This agreement shall be in conformity with these revised instructions and the directions of the Hon’ble Supreme Court in this regard.

Moreover, 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.
Banks shall renew their locker agreements with existing locker customers by January 1, 2023.

However,
As there was a delay in signing a new agreement with their customers by January 1, 2023. It was further extended to 31st December, 2023.

More Details -

Relating to insurance of locker contents by the customer the agreement states that banks shall clarify in their locker agreement that as they do not keep a record of the contents of the locker or of any articles removed therefrom or placed therein by the customer, they would not be under any liability to insure the contents of the locker against any risk whatsoever. Banks shall under no circumstances offer, directly or indirectly, any insurance product to its locker hirers for insurance of locker contents.
The RBI said that banks have been advised to make necessary arrangements to facilitate execution of the revised agreements by ensuring the availability of stamp papers, etc.

The RBI had issued revised instructions with respect to Safe Deposit Locker/Safe Custody Article Facility that inter alia required banks to enter into revised agreements with the existing locker holders by January 1, 2023,
However, it has come to the notice of RBI that a large number of customers are yet to sign the revised agreement. In many cases, the banks are yet to inform the customers about the need to do so before the stipulated date (January 1, 2023)