RBI mandates new bank locker rules from January 1

TIL Desk/Business/New Delhi/ RBI issues instructions for bank safe deposit lockers: In line with the SC order, the RBI has introduced revised instructions for bank safe deposit lockers applicable from January 1.

— Banks should carry out due diligence for all the customers who have applied for a locker.

— The locker agreements with existing locker customers should be renewed by 2023. Banks have been asked to incorporate a clause in the locker agreement that the locker-hirer/s shall not keep anything illegal or any hazardous substance in the Safe Deposit locker.

— Banks are permitted to take a ‘Term Deposit’, at the time of allotment of the locker. The ‘Term Deposit’ would cover three years’ rent and the charges for breaking open the locker in case of such eventuality. Banks cannot insist on ‘Term Deposits’ from the existing locker holders or those who have a satisfactory operative account.