Bank locker guidelines: Is the bank responsible for loss or damage to locker contents?

Note that a bank is not liable in any case for deterioration or damage to the contents of the locker whether caused by rain, flood, earthquake, lighting, civil disturbance or commotion, riot or war or in the event of any terrorist attack or by any other similar cause(s), as per State Bank of India’s safe deposit locker agreement document. As per the agreement, “The Bank shall not be liable for any damage/ loss of contents of the locker arising from any act that is attributable to the fault or negligence of the customer whatsoever.”

Recently, a lady claimed that her Rs 60 lakh worth gold ornaments and jewellery went missing from her bank’s locker at the Kirti Nagar branch. According to a PTI report, the Delhi Police’s statement said that the locker was opened following standard operating procedures in the presence of bank officials. However, the complainant claimed that the jewellery inside was gone. She then notified the bank authorities and approached the police, alleging that her gold ornaments were stolen from the locker.

The Customer will not use the bank locker for any illegal activity or keep anything illegal/ contraband or any hazardous substance in the locker. According to the SBI locker agreement, “In the event the bank suspects the deposit of any illegal/ contraband or hazardous substance by the customer in the locker, the customer agrees and acknowledges that the bank shall have the right to take such appropriate action against the customer including opening of the locker subject to compliance of legal formalities in this regard, termination of the right to use the locker or termination of this agreement as it deems fit.”

The bank has the right to break open the bank locker and deal with its contents in accordance with the provisions under the agreement, in case of any one or more of the following events-

(a) In the event termination notice in accordance with Clause 3.2.1 hereof is served to the customer and the Customer does not surrender and vacate the locker after the end of the notice period stipulated under the termination notice.

(b) The rent remains unpaid for 3 (three) consecutive years; and

(c) The locker remains inoperative (irrespective of whether rent is paid or not) for a period of 7 (seven) years or more; and the customer cannot be located by the Bank.

Apart from Locker rent, Bank would also recover following charges in respect of locker:
a) One time registration charge
b) Locker visit charges over prescribed number of operation
c) Locker rent overdue charge
d) Break open charge for locker.
All charges related to lockers are displayed on the bank's website (bank.sbi).

Banks sometimes obtain a term deposit, at the time of allotment, which would cover three years’ rent and charges for breaking open the locker in case rent is not paid by the locker-hirer.