Banks are reminding locker customers to renew their contracts by December 31, 2022, as we approach the new year 2023.
One of these messages may also have been sent to you if you are already a locker customer. When the new rules for bank lockers went into effect on January 1, 2022, some of you might be wondering why the banks are sending such a message. Let’s aid in your comprehension.
On January 1, 2022, the Reserve Bank of India (RBI) issued new regulations regarding bank lockers. By January 1, 2023, banks must renew locker agreements with their current customers in accordance with the revised regulations. The revised instructions for the safe deposit locker/safe custody article were issued by the RBI on August 18, 2021, but they went into effect on January 1, 2022.
New locker contract: The revised instructions from the RBI state that the last day to renew locker agreements is January 1, 2023. “By January 1, 2023, banks must renew agreements with existing locker customers,” the RBI had stated.
The new locker agreement’s key points Banks must sign a legally binding document with their customers before they can give them lockers.
The lock-hirer (customer) must receive a copy of the locker agreement signed by both parties so that they are aware of their rights and responsibilities.
The bank’s branch where the locker is located keeps the original locker agreement.
Locker rent can be recovered through a fixed deposit The Reserve Bank of India (RBI) has granted banks permission to obtain a term deposit (fixed deposit) that covers three years’ rent and the charges at the time of allotment. This means that if you want to open a locker account, the bank may ask you to open a term deposit that covers the locker’s costs and rent for three years.
Because the locker-hirer might stop using the locker or stop paying the rent, this provision has been made to ensure prompt payment of the rent. The RBI, on the other hand, will view the requirement for term deposits to cover costs for more than three years as a restrictive practice.
Can a bank compel customers of lockers to open FD?
No. According to RBI’s guidelines, banks are required not to demand such term stores from the current storage holders or the people who have good usable records.
What happens if you surrender the locker after paying the rent in advance? According to the RBI, if a customer surrenders the locker early, the banks must return the appropriate amount of the advance rent they received from the customer.
What happens to the locker when the bank closes, moves a branch, or merges with another bank? In case the bank closes, moves a branch, or merges with another bank, it must inform the public of this in two newspapers, one of which must be a local daily written in the local language. Customers must also be informed at least two months in advance of any changes or closures to their bank accounts.
The Reserve Bank of India states, “Banks shall make efforts to inform their customers suitably at the earliest opportunity in the event of unplanned shifting due to natural calamities or any other such emergency situation.”
