Bank Locker Agreement

Customers who have no other banking relationship with the bank may receive the facilities of a safe after meeting the criteria of the CDD under Know Your Customer, Instructions 2016, subject to continued compliance. For example, there was an appeal by Mr Amitabha Dasgupta, born in Calcutta, against the United Bank of India, for which the verdict was delivered on 19 February 2021. The Supreme Court (SC) has concluded that banks cannot wash their hands of their responsibility to customers for the operation of bank records. The SC has instructed the RBI to develop revised standards for bank safes to protect the interests of customers, which should be binding on banks. On August 18, 2021, the RBI announced revised standards for bank lockers, custody options and items in banks. The RBI`s new guidelines for bank lockers apply to new and existing lockers. It states that banks cannot decline responsibility for the loss of the contents of a customer`s locker due to theft or fraud by bank employees. However, banks are not responsible for loss/damage to the record due to natural disasters or negligence of the customer. As mentioned earlier, banks cannot claim that they are not liable to you for the loss of contents of your lockers. The liability of banks in case of theft, building collapse or fraud by their employees is equal to one hundred times the applicable annual rent of the bank safe. However, if the locker remains in operation for a period of seven years and the tenant of the locker cannot be located, even if the rent is paid regularly, note that the bank is free to transfer the contents of the locker to its legal agents/heirs or dispose of the items transparently, as appropriate. Bank Locker Keys – There must be a lock change system when the locker is handed over by the tenant to avoid double keys or theft. Keys to empty lockers must be kept in sealed envelopes.

The duplicate of the master keys must be deposited at another branch of the bank. The bank must ensure that the bank/branch identification code is indicated on the locker keys in order to facilitate the possession of the lockers if necessary. For new customers who request bank lockers, the new locker agreement will apply from 1 January 2022. However, for existing locker holders, RBI has given banks a one-year period to renew their locker agreements until January 1, 2023. The RBI states that before the end of the day, banks will send a notification via email and SMS to the customer`s registered email ID and mobile phone number as a positive confirmation indicating the date and time of the locker operation and the repair mechanism available in case of unauthorized access to the locker. Banks take the necessary steps to ensure that the area where the locker is located is properly secured to prevent criminal burglaries. The area where the lockers are located must be properly guarded at all times and with maximum security. The location of lockers must be adequately secured to protect against the risk of fire, rainwater and flooding, and damage to lockers in emergency situations. Secure access to the electronic locker – If the lockers are operated through an electronic system, the bank will take reasonable steps to ensure that the system is protected from hacking or security breaches.

The customer`s sensitive financial data must be secure and not disclosed to third parties without the consent of the locker owner. Banks should ensure that electronically controlled lockers comply with the cybersecurity framework prescribed by the RBI. However, keep in mind that the Reserve Bank of India (RBI) has already mentioned that banks are not obliged to compensate the customer if the contents of your bank safe are damaged due to a natural disaster. Under the new rules, banks must have a board-approved policy for appointing and disclosing the contents of security lockers/guard items to the applicant and protection against notification of claims from others. Locker Rules Existing customers of a bank who have submitted a record application and fully meet the customer due diligence criteria will receive the locker facilities. Even customers who have no other banking relationship with the bank will receive the facilities of a safe after compliance with the customer due diligence criteria. RBI`s revised guidelines state that existing customers of a bank who have submitted a record application and fully meet the criteria of the CDD under Know Your Customer, Directions 2016 will be equipped with lockers subject to ongoing compliance. According to the new RBI guidelines, the communication states: “Banks` duty of care includes ensuring the proper functioning of the locker system, protecting against unauthorized access to lockers, and providing adequate safeguards against theft and theft. It is the responsibility of the banks to take all necessary measures to ensure the security of the premises where the safes are located.

Banks must ensure that incidents such as fire, theft/burglary/theft, accoïté, collapse of a building do not occur due to their own defects, negligence and omission/commission on the bank`s premises. If you are considering getting a bank safe or currently have one, here are the revised bank vault rules that you should keep in mind: Banks should include a clause in the locker agreement that the vault tenant(s) must not keep illegal or dangerous substances in the locker. If the Bank suspects illegal content, the Bank has the right to take the necessary measures against the Client. How is the bank responsible for customer records? Banks offer a nomination option in the case of lockers and have appropriate systems and procedures in place to record the appointment, cancellation and/or modification of the appointment by locker owners in their books. Banks are required to maintain a list of empty lockers branch by branch, as well as a waiting list in the Central Banking System (CBS) or any other computerized system that complies with the cybersecurity framework published by the RBI for the purpose of assigning lockers and ensuring transparency in the allocation of lockers. As already mentioned, remember that the Bank will not be responsible for any damage / loss of the contents of the locker resulting from natural disasters or force majeure such as earthquakes, floods, lightning and thunderstorms or actions resulting from the sole fault or negligence of the Client. To get your bank safe, the bank charges an annual rent and the rent for the locker must be paid in advance. The customer is required to maintain or manually pay a sufficient balance in his accounts for a direct debt instruction in the direction of renting the locker. If the rental of the locker has been recovered in advance, the bank will reimburse the customer an amount in proportion to the rent received at the time of delivery of the locker.

Due diligence is carried out for all customers, regardless of the rights and abilities they rent the locker. RBI has also made it mandatory for banks to settle claims of deceased records as soon as possible, i.e. within 15 days from the date of receipt of the claim with the appropriate documentation and proof of the depositor`s death in connection with the appointment. In the event of a complaint by a customer that his or her record has been accessed without his or her knowledge or authority, or if a theft or security breach is detected, the Bank is required to keep this video surveillance log as evidence of the police investigation and to resolve disputes arising from such incidents. Banks usually charge their customers for an annual locker rental and the new guidelines bring more clarity here. In order to avoid situations where the locker tenant does not operate the locker or pay the rent, and to ensure immediate payment of the locker rental, banks are allowed to receive a deposit at the time the locker is assigned. Experts say banks can`t insist that customers looking for a safe get a larger-scale term deposit, buy a life insurance product or other products sold by the bank. .