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Reserve Bank of India issued new guidelines and rules for safety of bank’s locker; Read to know

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The Reserve Bank of India‘s (RBI) new rule, however, allows the bank to smash your locker if you haven’t used it in a long time.

These days, most of us use bank lockers to keep our belongings safe, such as jewelry, documents relating to a property, and so on. In any event, a bank locker is safer than our home, where the chance of having items stolen is greater.

Reserve Bank of India’s new guidelines

bank

According to the new guidelines of Reserve Bank of India, which took effect on January 1, 2022, banks must now include a condition in the locker agreement prohibiting the hirer from keeping anything illegal or hazardous in the locker.

The amended criteria will apply to both existing and new safe deposit lockers, as well as the banks’ safe custody of articles service.

Can banks break your locker?

In a new rule of Reserve Bank of India, the banker’s bank has authorized banks to break the locker if it has not been used for a long time, such as seven years. It makes no difference if you pay the locker rent on time.

Following the break-in, the banks will either transfer the contents to the nominee/legal heir or dispose of the assets.

However, in the public interest, the RBI has published explicit instructions that must be followed before any locker is broken.

Apart from India’s safety regulations, the Reserve Bank of India’s new recommendations have asked banks to investigate issues such as:

Wait List of Lockers

Branches should keep a waiting list for locker allocation and ensure that locker allocation is transparent. All locker allocation applications should be recognized and assigned a waitlist number.

At the time of locker allotment, banks should additionally give a copy of the agreement regarding locker operation to the locker-hirer.

Operations of Safe Deposit Vaults/Lockers

Banks should take all reasonable precautions to ensure the safety of the lockers given to customers. Regularly, banks should examine the mechanisms in place for the operation of safe deposit vaults/lockers at their branches and take the required procedures.

The security protocols should be well-documented, and the personnel involved in the procedure should be well trained. Internal auditors should make sure that the procedures are followed to the letter.

Fixed Deposit as Security for Lockers

Banks may encounter instances where the locker-hirer does not operate the locker and does not pay the rent.

To ensure prompt payment of locker rent, banks may require a Fixed Deposit at the time of allotment, which would cover three years’ rent as well as the costs of breaking open the locker in the event of an emergency.

Banks, on the other hand, should not impose such a Fixed Deposit on existing locker-hirers.

Locker Opening Guidelines

The rules go on to say that the locker should be opened in front of a bank representative and two independent witnesses and that the whole thing should be videotaped.

The contents of the locker must be maintained in a sealed envelope with complete inventory within a fireproof safe in a tamper-proof manner until claimed by the customer, according to the RBI.

What is a Bank Locker?

It’s nothing more than a type of account where you can put your assets, such as jewelry or land documents. The locker comes with two keys. Bank has one key, while the locker holder has the other.

Only when both keys are used at the same time can the locker be unlocked. Typically, a bank official will apply the key and then depart the locker room, and only then will you be able to open the locker door and do whatever you want.

The banks employ high-end, well-secured lockers. When compared to keeping valuables at your home, this will provide you with the highest level of security.

Also Read: INDIA ON THE TOP LISTS OF INTERNATIONAL MONETARY FUND PREDICTING ECONOMIC GROWTH FOR FY 2022

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