Bank Locker Loss Cover Fixed At 100 Times Annual Rent: Nirmala Sitharaman

New Delhi: The standard insurance coverage for bank locker holders is fixed at 100 times the annual locker rent in case of any loss, Finance Minister Nirmala Sitharaman said on Monday. Replying to a supplementary question in the Lok Sabha during Question Hour, FM Sitharaman clarified that banks are not allowed to check or record the valuables kept by customers in lockers, as doing so would violate banking regulations. "Because of this restriction, it is not possible to offer insurance coverage based on the actual value of items stored," the Finance Minister stated.

FM Sitharaman explained that any attempt by banks to monitor what customers store in lockers would amount to a breach of privacy and rules. The minister said that since banks cannot inspect or evaluate locker contents, a uniform rule has been put in place. "Under this, customers are entitled to compensation of up to 100 times the annual locker rent in case of loss, such as theft or damage," FM Sitharaman explained. The finance minister added that offering separate or differential insurance coverage for each locker is not practical under the current system.

“As of now, there is no proposal under consideration to change this arrangement,” FM Sitharaman stated. Meanwhile, earlier in the day, the Parliament approved the Finance Bill 2026 with the Rajya Sabha returning it to the Lok Sabha by a voice vote, completing the legislative process to provide the legal backing for the proposals of the Union Budget 2026-27 to kick in during the new financial year beginning from April 1.

The Lok Sabha passed the bill on March 25, along with 32 amendments. The Rajya Sabha returned the bill after a brief discussion, and Finance Minister Sitharaman's reply to questions raised by Members of Parliament on her budget proposals.

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