Customers can renew bank locker agreements till Dec 2023

Lenders are first required to inform all customers about the need for renewals and the last date for it, by April 2023.

FPJ Web DeskUpdated: Monday, January 23, 2023, 07:19 PM IST
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Banking apps and e-wallets have helped people do away with visits to the bank where they need queue up to deposit cash. But assets such as gold jewellery and cash are still safer in bank lockers, as rainy day savings or secure investments. To make sure people can continue to use these services, the Reserve Bank of India has provided more time for banks to ensure that agreements for the guarded safes are renewed.

Details about new deadlines

India's banking regulator has stepped in after learning that most customers at Indian banks weren't even aware that they needed to renew bank locker deals before January 1, 2023. Hence banks have now been given time till December 31, 2023, to complete the entire process in different phases. Lenders are first required to inform all customers about the need for renewals and the last date for it, by April 2023.

Digital services to make it easier

Between July and September, they need to ensure that at least 50 to 75 per cent people have renewed agreements for their lockers. Electronic agreement execution and e-stamping have been recommended as digital tools to make renewals speedy and convenient. Customers should also be notified about updated norms, by April.

Take a look at new guidelines

Earlier this month, the RBI had updated guidelines about bank lockers, allowing banks to charge a term deposit from new customers. But they can't charge the same amount, which includes rent and charges to break the locker if it is unused, from existing users who have a stable bank account. Banks also need to refund rent collected in advance if accounts are surrendered, and must mention that they don't insure or list contents of the locker.

Banks are also required to ensure that lockers are properly closed, and must send SMS and email to customers about the activity of the safe. In case a safe is broken over non-payment of rent, a bank official and two witnesses must be present, while the whole process is taped.

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