Therefore, the Reserve Bank of India (RBI) has mandated that banks secure a term deposit at the time of allotment that would cover three years’ rent and the costs of breaking into the locker. For customers who already have a bank account, banks will not need them to make a term deposit. Customers who return their locker will be reimbursed the proportionate amount of the advance rent obtained from them.
Banks can’t force consumers seeking a locker to take up a higher-interest term deposit, buy a life insurance policy, or any other product the bank sells, say experts. The central bank’s notification makes it clear that bundling locker facility allotment with term deposit placement beyond what is officially permitted will be regarded as a restrictive practice.
Operations in the locker room
Before the end of the day, banks must send an email and SMS alert to the customer’s registered email ID and mobile number informing them of the date and time of the locker operation, as well as the redressed procedure accessible in the event of unauthorized locker access.
To ensure transparency in locker assignment, the updated guidelines, which take effect on January 1, 2022, state that banks must keep a branch-by-branch list of unoccupied lockers as well as a wait-list in the core banking system. If lockers are not available for allotment, the banks will acknowledge receipt of all applications for locker allotment and issue customers with a waitlist number.
Banks will use an IBA-drafted model locker agreement to guarantee that no unfair terms or conditions are included in their locker agreements. By January 1, 2023, banks must renew their locker agreements with existing locker users.
Locker regulations
Existing bank customers who have applied for a locker facility and are completely compliant with the customer due to diligence standards will be provided with safe deposit lockers. Customers who have no other financial account with the bank will also be given the option of using a safe deposit locker after meeting the bank’s customer due to diligence criteria.
All banks must include a paragraph in the locker agreement stating that the locker-hirer will not store anything illegal or harmful in the safe deposit box.
System of security
If the lockers are controlled by an electronic system, the bank will verify that the system is safe from hacking or other security breaches. Customers’ personal information, including biometric information, cannot be shared with other parties without their permission. Furthermore, banks must guarantee that electronically operated lockers adhere to the RBI’s Cyber Security Framework. The system should be able to keep a permanent record of locker actions.
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