RBI’s Revised Bank Locker Rules To Be Effective From 1st Of January 2023

What will we Read in this Article? In this article we will read about RBI’s Revised Bank Locker Rules which will be effective from 1st Of January 2023. According to the RBI’s revised Bank Locker Rules/guidelines, banks need to ensure that no unfair terms or conditions are incorporated in their locker agreements. The central bank has mandated that all banks must offer updated locker agreements to their customers who use safe deposit lockers. The RBI has instructed all lenders to use the Indian Banks’ Association IBA-drafted Model Locker Agreement, which is said to be in line with the Supreme Court’s orders and guidelines.

What is in the News?

• The Reserve Bank of India (RBI) has made an announcement that all the major banks in the country need to comply with the new locker regulations from 1 January 2023.
• As per the RBI’s Guidelines, Banks shall renew their locker agreements with existing locker customers by January 1, 2023″.

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Let’s have a Look at the Background

• RBI’s new guidelines on Locker were declared on August 8, 2021, and came into effect on January 1, 2022.
• According to the new guidelines, it is the banks’ responsibility to ensure the safety and security of the premises where the safe deposit vaults are placed.
• As per the new RBI guidelines, Banks will be eligible to pay in case of any loss of locker content resulting from the bank’s negligence.
• Accordingly, all the major Banks asked to customers for proof of eligibility for a renewed locker arrangement.

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Key Highlights of the RBI’s Revised Bank Locker Rules

Let’s have a look at the RBI’s revised Bank Locker Rules/guidelines:

CCTV

The RBI has said that it is mandatory for banks to install CCTV to monitor the locker rooms. Besides, it has also asked the banks to keep the data of CCTV for 180 days. This will help in checking if any discrepancy occurs.

Make the Availability of Lockers Public

The RBI has also noted that banks make the availability of lockers public by displaying the information on a display board within the bank. The customers should be apprised of the list of empty lockers, the waiting list for the locker, and the number on the waiting list.

SMS Alerts

In order to protect customers from fraud, the RBI directed that the respective banks should send SMS and e-mails every time a customer accesses his locker. This alert will protect customers from fraud.

Rent of Locker

The banks can now demand a term deposit at the time of allocation of a locker that would be taken as the rent for three years. For existing locker holders, banks cannot insist on such Term Deposits or from those who have satisfactory operative accounts.

An Upgradation Which Demands More Alertness From Banks!

• It is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed.
• It has the responsibility to ensure that incidents like fire, theft/ burglary/ robbery, dacoity, and building collapse do not occur in the bank’s premises due to its own shortcomings, negligence, and by any act of omission/commission.
• As banks cannot claim that they bear no liability towards their customers for the loss of contents of the locker, in instances where the loss of contents of the locker is due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker.

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FAQs on RBI’s Revised Bank Locker Rules

Q. When did RBI declare new guidelines on Locker?

Ans. RBI’s new guidelines on Locker were declared on August 8, 2021, and came into effect on January 1, 2022.

Q. Which are RBIs New Rules about compulsory CCTV for Bank Lockers?

Ans. The RBI has said that it is mandatory for banks to install CCTV to monitor the locker rooms. Besides, it has also asked the banks to keep the data of CCTV for 180 days. This will help in checking if any discrepancy occurs.

Q. When will RBI’s Revised Bank Locker Rules Be Effective?

Ans. RBI’s Revised Bank Locker Rules To Be Effective From 1st Of January 2023

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