About New Bank Locker Rules Effective from January 1, 2023

By Anupama Deshpande | Apr 10, 2023

Lockers are a convenient and secure way for individuals to store their valuable possessions. Whether it is in a bank or a private locker facility, the rules surrounding the use of these lockers are strict and necessary. It is essential to follow the rules and procedures laid out by the bank or locker facility to avoid any legal complications.

In recent years, there have been several changes in the banking sector in India, including the new bank locker rules that were introduced in January 1, 2023. The key idea behind these new rules is to enhance the safety and security of bank locker users and their valuables and also a guarantee the prompt payment of locker rent.

The introduction of these new bank locker rules has received mixed responses from the public. While some have welcomed the changes as a necessary step towards improving the safety and security of bank locker usage, others have criticized the rules for placing greater responsibility on the customer instead of the bank.

All About New Bank Locker Rules Effective from January 1, 2023, Deadline for new bank locker agreement extended by the RBI

Latest Rules of Bank Locker in India w.e.f. January 1, 2023

Here are the bank locker latest rules you must know. Outlined below are all the amendments:

  • SMS alerts and e-mails: Bank must have to send SMS and email alerts about locker access and operation at the end of the day.
  • Open fixed deposit: Banks across India will have the liberty to obtain a fixed deposit at the time of allotment of locker to any customer covering 3 years rent so that if any locker holder does not pay the rent on time, it may be recovered from the fixed deposit. Also the charges for breaking to open the locker can also be recovered from it.
  • No compulsion of FD from Existing Locker Hirer: Banks are not allowed to obtain Fixed Deposits from their existing locker holders.
  • When bank will compensate locker holder?: Banks will have to compensate the locker holder towards any loss of locker content due to the bank's negligence, such as fire, theft, dacoity, and building collapse. The bank will pay up to a 100 times the annual rent of the locker to the locker holder in such cases.
  • When bank will not compensate locker holder?: Banks will have no liability for any damage or loss of locker contents caused by natural calamities like earthquakes, floods, lightning, or thunderstorms, or due to the customer's negligence.
  • Relocation, merger, or a closure of the bank branch: Now banks are required to give notices in two newspapers and also notify customers, at least two months in advance, in case of relocation of the bank branch, a merger, or a closure. The bank also need to provide its customers with the choice to close or change its facility in such cases.
  • Locker rent is obtained in advance: If the locker rent is obtained in advance, the proportionate amount has to be given back to the customer in case the account is surrendered by the hirer.
  • No insurance products to safeguard locker contentsBanks are not allowed to provide any insurance products to their customers to safeguard the locker contents.

The new bank locker rules will also help to streamline the process of renting a locker. With all the terms and conditions spelled out in the agreement, customers can quickly and easily sign up for a locker without any confusion or misunderstandings.

These new bank locker rules have been a positive step towards enhancing the safety and security of bank locker usage in India. While there may be some initial resistance and confusion as customers adjust to the changes, the long-term benefits of these new rules are likely to be significant for both customers and banks.

Deadline for new bank locker agreement extended by the RBI till December 31, 2023

Earlier the RBI had insisted the banks to renew their customer locker agreements by the January 1, 2023. Now the locker holder is allowed to sign new bank locker agreement by December 31, 2023. This step is taken by the RBI due to following the delay by banks in signing a new agreement with their customers by January 1, 2023.

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About Anupama Deshpande
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.