There is a big update on locker agreement renewal. The Reserve Bank of India has extended the deadline and given necessary instructions to the banks. From January 1, the central bank has also issued orders regarding freeze lockers.
The Reserve Bank of India (RBI) has extended the deadline for renewal of agreements with existing locker customers for banks. The central bank said in a release that the deadline will be extended in a phased manner till December 31 this year. Under this, the process will be completed by 50 percent by June 30, 2023, by September 30 and 75 percent by 2023. RBI has asked banks to make necessary arrangements to ease the process of agreement renewal by ensuring availability of stamp paper etc.
Instructions for operating freeze lockers
Apart from this, from January 1, 2023, the lockers which are frozen due to lack of agreement, have been instructed to make them operational with immediate effect. In August 2022, the Reserve Bank had issued new rules related to safe deposit lockers issued a circular. Under this rule, banks had to revise the agreement with the existing locker holders by January 1, 2023. These rules were to be applicable to the old locker holders. These rules are applicable to new customers from January 2022 only.
What is the new rule?
Under the new rules, banks will be required to display the list of empty lockers and waiting list. Apart from this, banks will have the right to charge locker rent from customers for a maximum of three years at a time. The biggest thing is that in case of loss to a customer, it will no longer be possible to withdraw citing the bank’s conditions, rather the customer will be fully compensated.
Banks will not be able to escape from the responsibilities
According to the revised rules of RBI, banks will have to ensure that no unfair condition is included in the locker agreement done by them, so that the bank can easily walk away in case of loss to the customer. RBI has made this change in the rules to protect the interests of bank customers. Many times it is seen that the banks shirk their responsibilities citing the terms of the agreement.
As per RBI Rule’s, the bank will be eligible to pay in case of any damage to the contents of the locker due to the negligence of the bank. It is the responsibility of the banks to take all steps for the security of the premises in which the lockers are located. It is the Bank’s responsibility to ensure that the loss is not caused by fire, theft/robbery, building collapse in the Bank’s premises due to its own lapses, negligence and any lapse/commission.
