Bank locker rules: 5 things to know if you have a bank locker or plan to open one

Feb29,2024



bank locker rules: Do you have a bank locker or are you considering opening one? This article is essential to understand the complexities and your rights as a customer.
Its purpose is to provide a comprehensive understanding of bank locker agreementThe associated fees, relevant fine print, and rights as a customer.

Bank Locker Rules: 5 Things to Know

  1. The primary thing to understand is that individuals can open a locker in any bank, irrespective of whether they have an existing banking account there or not. Even if you have no prior connection with a bank, you are still eligible to get a safe deposit locker. For example, suppose you keep your salary account in Bank A, your savings in Bank B, and nearby is Bank C where you have no affiliation. In such a scenario, you can still contact Bank C. Although you will need to complete the KYC process, you can still secure a bank locker at that specific bank.
  2. Another common problem that many people face is when banks inform them that there is no locker available. However, following the change in RBI norms in August 2021, banks are now obliged to maintain a record of empty lockers as well as the waiting list of customers. So, when you apply for a locker at a bank, they have to accept your application, respond to it, and either allot you a locker when available as per your choice, or provide you with a waiting list number. Will have to do. This ensures transparency and accountability in the process locker allotment,
  3. The third aspect to consider is that the bank may request you to open a fixed deposit (FD) if you want to secure a locker. This requirement generally applies to new customers, especially those who are new to the bank. While this may sound strict, the underlying logic is to ensure that the bank has recourse in the event of default or neglect of the locker. The bank cannot demand an FD for any arbitrary amount; It should be for a specific amount. As per the rules, the FD must be funded with an amount equal to three years' rent, plus any charges specified by the bank for breaking the locker if rent has not been paid for three years and there has been no operation. should go. Held on locker.
  4. Many people overlook the importance of enrollment when it comes to lockers. However, it is mandatory for banks to provide nomination facility. It is important to have a nominated person associated with your locker and to understand the processes to select, change or understand the rights and powers of the nominated person. Additionally, it is essential to understand what actions the nominee should take in case of the unfortunate death of the locker holder.
  5. The last and important thing to remember is that none of the items you keep in the locker are insured. The Bank cannot offer insurance for the contents of your locker. Although the bank bears some liability, it is limited. The bank's liability is limited to 100 times the annual locker rent. If the annual rent of your locker is Rs 5000, you will get protection against loss up to Rs 5 lakh. This coverage extends to incidents like fire, theft, robbery and building collapse. Therefore, if you keep valuable items like jewelery in the locker, it is advisable to get them professionally appraised and insured separately.



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