Bank locker holders risk losing access if rental pacts aren't renewed: RBI deadline looms

Locker-holders are at risk of losing their bank lockers if they don't sign an updated rental pact with their banks. About a fifth of those renting lockers stand to lose access if they don't comply with regulatory deadlines, those familiar with the matter told ET.

As the Reserve Bank of India (RBI) seeks compliance status from lenders, banks are contemplating action against errant customers. To ensure compliance and shield themselves from regulatory scrutiny, banks have reached out to the regulator and the government, requesting permission to issue final notices and seal lockers, if necessary, said people familiar with the development.

At present, banks only send reminders to their customers to renew the agreement.

A request from public sector banks is being examined by the government, an official said.

The RBI's revised locker agreement instructions had to be fully implemented by March 2024.

Some of the changes incorporated in the new locker agreement included new clauses such as if banks fail to protect belongings in locker customer can avail remedies applicable under the law.

"There are customers who, despite reminders, have not turned up.... Then there are some genuine cases due to legal issues between parties involved," said a bank executive, requesting anonymity.

Another banker said that during individual representations before RBI, some banks have raised the issue and submitted that they should be allowed to send notices and stop operations of lockers on account of non-compliance.

An email sent to RBI did not elicit any response.

"Meanwhile, we have requested that the compliance date of March 2024 should be extended, including the time given to the customer for compliance, which can be four months," said the banker cited immediately above. For treating banks as fully compliant with RBI norms, the new deadline should be December 2025, said the banker.

Renewal Deadline
In August 2021, the RBI had asked banks to enter into revised agreements with the existing locker holders by January 1, 2023, in view of various developments in the area of banking and technology, the nature of consumer grievances and also the feedback received.

It later extended the deadline first to December 2023 and then March 2024.