Bank locker agreement renewal: December 31 deadline for renewing agreement

Updated : Dec 14, 2023 18:00
|
Editorji News Desk

The Reserve Bank of India (RBI) has introduced a phased renewal process for bank locker agreements, setting a deadline of December 31, 2023, for account holders who submitted their agreements on or before December 31, 2022. These individuals are required to sign revised agreements and submit them to their respective bank branches.

Renewal Process and Bank Responsibilities: Banks have been mandated by the RBI to facilitate the execution of fresh or supplementary stamped agreements. This involves arranging stamp papers, electronic execution, franking, or e-stamping as needed. Upon execution, banks will furnish a copy of the agreement to the customer.

At the outset of locker allotment, a formal agreement is entered into between the bank and the customer, signed by both parties. The original agreement is retained by the bank at the branch where the locker is located, while a duplicate copy is provided to the locker hirer.

Safety Measures and Bank Liability: The RBI places the onus on banks to ensure the safety and security of the premises housing safe deposit vaults. It's imperative for banks to take proactive measures to prevent incidents like fire, theft, burglary, or structural failures arising from their own negligence or acts of omission/commission.

Liability for Damage and Loss: Banks are absolved of liability for damage or loss of locker contents resulting from natural calamities or acts of God, such as floods, thunderstorms, earthquakes, or lightning. However, banks are expected to exercise due care in safeguarding lockers from such catastrophic events. The customer bears responsibility for any loss or damage to locker contents caused by their fault or negligence, as per the RBI.

Compensation and Customer Rights: Should banks be held accountable for any loss or damage to locker contents, they are obligated to compensate the customer. It remains the bank's duty to ensure the safety and security of lockers and their premises. Customers have the right to be informed about their rights and responsibilities through the signed locker agreement, as stipulated by the RBI.

Bank Locker rules

Recommended For You

editorji | Business

New Zealand commits USD 20 bn investment in India under FTA in 15 yrs; on lines of EFTA pact

editorji | Business

India, New Zealand conclude FTA talks; pact to offer duty-free access, USD 20 bn FDI

editorji | Business

FTA with New Zealand to significantly deepen bilateral economic engagement: Govt

editorji | Business

Rupee breaches 91-mark against US dollar for first time in intra-day trade

editorji | Business

Microsoft commits USD 17.5 billion investment in India: CEO Satya Nadella