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UCO Bank ordered to pay Rs 10 lac to customer whose gold was stolen from Bank Locker


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The National Consumer Disputes Redressal Commission (NCDRC) has found UCO Bank accountable for failing to implement adequate measures to safeguard valuables stored in lockers by customers. The bank has been directed to reimburse a customer for the theft of jewelry worth Rs 10 lakh from their locker.

The complainants asserted that they stored jewelry, gold ornaments, and other valuables, including cash exceeding Rs 35 lakh, in the locker. According to their complaint, a burglary occurred at the Civil Lines Branch of UCO Bank in Allahabad on the night of April 29th/30th, 2018. The thieves reportedly breached the strong room door, cut steel lockers using gas cylinders and cutters, and stole all the stored gold ornaments, jewelry, and cash.

The complainants further alleged that, even after the burglary, the entire bank premises, including the locker room, remained open and unguarded until the morning of May 1, 2018. The bank employees reportedly noticed the burglary only when the branch reopened after a continuous closure of three days and four nights.

During a visit to the bank on May 5, 2018, one of the complainants discovered that locker no. 14AF had been opened with a gas cutter, and all the contents, including gold ornaments and jewelry, were missing. The complainants also claimed that the bank continued to charge locker rent from their savings account even when the locker was not in use.

In its order dated December 15, 2023, the NCDRC concluded that this was a clear case of service deficiency by the bank concerning its security and safety system. UCO Bank argued that, according to the terms and conditions of the bank locker, it is not liable for losses beyond its control. However, the NCDRC found that the bank left the branch unattended after business hours, lacked a security guard for several years, and had an outdated security system.

The NCDRC noted that the bank failed to provide evidence of the security system’s maintenance and daily checks, and when the complainants highlighted deficiencies, the bank did not address or contradict them. The NCDRC stated that this constituted a clear case of service deficiency regarding the bank’s security and safety system.

The complainants initially filed a case with the State Consumer Commission against UCO Bank’s service deficiency, resulting in a compensation order of Rs 20 lakh on February 7, 2023. UCO Bank appealed this decision before the NCDRC. After reviewing the case, the NCDRC reduced the compensation to Rs 10 lakh, stating that although the bank was deficient in service regarding locker safety, the original compensation amount was deemed excessive.

3 Comments

  1. Banks should advise customers to use their own (customers’) locks in addition to that built into the locking system. Customers then can’t blame the bank for internal fraud atleast. Security measures at banks are in accordance to Govt and RBI specifications.

  2. In this particular case bank was in wrong side as security alarm was not checked and branch was unattended for hours and was not having a security guard, robbery was done using gas cutter so any personal lock by customer also would have been cut. Very right verdict by NCDRC.

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