New Bank Locker Rules to Change From Jan 1; Check Guidelines, Locker Rates, Nominee & More

In view of the fact that the new locker rules will go into effect on January 1, 2023, the Reserve Bank of India (RBI) has advised all major banks to provide locker agreements to their holders before that date.

Prior to that, on August 8, 2021, the RBI released updated regulations that come into effect on January 1, 2022. All locker owners are now required to show that they are eligible for a new locker arrangement and to sign a renewal agreement before January 1, 2023.

Banks are required to make sure that no unfair terms or restrictions are included in their locker agreements, according to the RBI's updated standards. The contract's conditions must also not be any stricter than what is necessary for the regular course of business to protect the bank's interests. By January 1, 2023, banks must renew their contracts with current locker users.

According to the instructions, all banks must distribute a new locker agreement to their customers who have safe deposit lockers in order to comply with the new regulations. The model locker agreement developed by the IBA may be used by all lenders, according to the Central Bank, provided that it complies with both the Supreme Court's orders and the amended instructions.

If the assets stored in the vaults are stolen or lost due to a fire or building collapse, the bank customers get up to 100 times the bank charges.

The RBI's most recent rules stated that banks must install CCTV to monitor the locker rooms. In addition, the RBI has mandated that banks retain CCTV data for 180 days. This will help identify any discrepancies.

SMS alerts

The RBI instructed the respective banks to send SMS and emails each time a consumer used his locker to safeguard customers from financial fraud. Customers will be protected against fraud by this warning.

Rent of locker

As per the RBI's guidelines, banks may now request a term deposit at the moment a locker is issued. This deposit would serve as the locker's three-year rent. Banks cannot, however, request such Term Deposits from current locker holders or from those who have good operating accounts.

Bank locker guidelines

Bank clients must sign a locker agreement with the banks before January 1, 2023, if they intend to rent a locker or already use one. After that date, the requirements for lockers will change.