Bank Locker Rules: What Documents can be kept in Bank Lockers, Know Cash Rules
In a surprising incident, termites devoured Rs 5 lakh kept in a locker at Citizen Cooperative Bank in Sector 51, Noida, Uttar Pradesh. The incident came to light when the customer opened the locker after three months and discovered the damage. The distressed customer reported the issue to the bank manager and demanded compensation. However, the manager refused, citing bank rules.
This raises an important question: when customers pay rent for the safety of their belongings in bank lockers, why is the bank not held accountable for damages?
RBI Guidelines on Bank Lockers
The Reserve Bank of India (RBI) has established rules to clarify the accountability of banks regarding lockers. Here’s what you need to know:
1. Bank’s Liability for Locker Contents
From January 1, 2022, RBI guidelines state that banks are liable to compensate customers in cases of arson, theft, building collapse, or fraud by bank employees. The compensation amount is up to 100 times the annual locker rent. For example, if a customer pays Rs 2,000 annually, the bank would pay Rs 2 lakh in compensation.
2. Why No Compensation for Termite Damage?
As per RBI rules, banks do not allow customers to store cash or currency in lockers. If cash is damaged due to termites or other reasons, the bank is not responsible, as storing cash violates locker usage rules.
3. What Can Be Kept in a Locker?
A contract signed between the customer and the bank specifies what can be stored in a locker. Typically, valuables like jewelry, important documents, and property papers are allowed.
4. Compensation in Case of Theft or Fire
If items in a locker are damaged due to theft, fire, or building collapse, the bank is responsible and must compensate the customer. However, for damages caused by natural disasters like floods or earthquakes, the bank is not liable.
Key Scenarios Related to Bank Lockers
Loss of Locker Key
If a customer loses their locker key, they must immediately notify the bank and file a police report. The bank will issue a new key after verifying the FIR and documents, with associated fees.
Death of Locker Owner
Upon the death of a locker owner, the nominee can access the locker after submitting the necessary documents. The nominee can either continue using the locker or close it.
Locker Rent and Charges
Locker rent varies based on size and location, ranging from Rs 500 to Rs 20,000 annually. Additional charges may include registration fees and overdue rent. Government bank locker rents are generally lower than those of private banks.
When Can a Bank Break a Locker?
A bank can break a locker if the rent is unpaid for three years or if the locker remains inactive for seven years. The bank must first attempt to contact the customer via letters, email, and public notices. If no response is received, the locker is broken in the presence of officials and witnesses, with the process recorded on video.
Conclusion
This incident highlights the importance of understanding RBI guidelines and the terms of locker usage. Customers should be cautious about what they store in lockers and ensure compliance with the rules to avoid disputes.
