The bank was held responsible for the damage caused to the item in the locker due to fire and theft

The RBI amended the guidelines for renting lockers

At the time of allotment of the locker, the bank will be able to take a term deposit equal to three years rent of the locker from the customer.

MUMBAI: The Reserve Bank of India (RBI) has amended its guidelines for renting lockers, saying that in case of fire, theft, malpractice by a bank employee, building collapse, etc., the liability of the concerned bank will be limited to 100 times the annual rent.

The agreement with the locker tenant will have to cover a new clause stating that the bank prohibits keeping any illegal or dangerous items in the lockers. The new guidelines will take effect on January 1, 2022.

Following a review of the deposit locker / safe custody article facility provided by banks in view of changes in the banking and technology sector, complaints received from lockers and suggestions received from banks and the Indian Banks Association and the Supreme Court's observation in a case judgment. This has been stated in a notification by the Reserve Bank.

These revised instructions will apply to new and existing Safe Deposit Lockers. Banks will have to ensure transparency in the allocation of lockers and maintain the information of vacant lockers and waiting in the core banking system or other computerized system as per the branch.

Banks will have to approve each application for allotment of lockers and will also have to provide a waiting list number to the customers. Banks will have to accept the model locker agreement prepared by the Indian Banks Association.

Banks will have to formulate a policy stating their liability in case of loss or loss of any item in the lockers due to negligence of the bank. This policy should be approved by the board of that bank.

The bank will not be responsible for any damage to the locker due to natural calamities like earthquakes, floods. But the bank will not be able to shirk its responsibility in case of damage to the contents of the locker due to incidents like fire, theft, robbery, malpractice by the bank employee etc.

The bank will be responsible for up to 100 times the current annual rent of the locker. At the time of allotment of the locker, the bank will be able to take a term deposit equal to three years' rent of the locker from the customer. However, the bank will not be able to insist on such a deposit from the existing locker holder.