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RBI issues new, revised instructions on safe deposit lockers in banks
The banks were also directed by the RBI to incorporate a clause in the locker agreement that the locker-hirers shall not keep any illegal or hazardous substances in the safe deposit locker.
The Reserve Bank of India (RBI) on Wednesday said that the banks should keep a branch-wise list of vacant lockers as well as one on waiting list for the purpose of allotment of safe boxes and ensure transparency. The RBI also noted that the new order would come into effect from January 1, 2022, and would be applicable to both new and existing safe deposit lockers.
“In order to facilitate customers in making informed choices, banks shall maintain a branch wise list of vacant lockers as well as a wait-list in Core Banking System (CBS) or any other computerized system compliant with Cyber Security Framework issued by RBI, for the purpose of allotment of lockers and ensure transparency in allotment of lockers,” the RBI said.
“The banks shall acknowledge the receipt of all applications for allotment of lockers and provide a wait list number to the customers, if the lockers are not available for allotment,” it further said.
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In the new guidelines issued on Wednesday, the RBI also said that the existing customers of a bank who have made an application for locker facility and fully compliant with the customer due diligence (CDD) criteria may be given the facilities of safe deposit lockers or safe custody article subject to on-going compliance.
Further, for customers who do not have any other banking relationship with the bank the facilities of safe deposit locker or safe custody article may be given after their compliance with the CDD criteria, the RBI further said. Also, the due diligence shall be carried out for all the customers in whatever rights and capacities they may be hiring the locker, it added.
The banks were also directed by the RBI to incorporate a clause in the locker agreement that the locker-hirers shall not keep any illegal or hazardous substances 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,” the guidelines noted.
According to the new guidelines, the banks shall have a Board approved agreement for safe deposit lockers and for the purpose, the banks may adopt the model locker agreement to be framed by the Indian Banks’ Association (IBA). “This agreement shall be in conformity with these revised instructions and the directions of the Hon’ble Supreme Court in this regard,” the RBI said. “Banks shall ensure that any unfair terms or conditions are not incorporated in their locker agreements,” it further said.
The RBI also said that the banks shall have a Board approved policy for settlement of claims and for the nomination and release of contents of safety lockers/ safe custody articles to the nominee and protection against notice of claims of others.
