Bank locker new rule: RBI extends deadline for banks to renew locker agreements

The Reserve Bank of India (RBI) has recently extended the deadline for banks to finish the process of renewal of agreements for the existing safe deposit locker holders in a phased manner by December 31, 2023.

In a circular dated August 18, 2021, the RBI issued revised instructions with respect to the Safe Deposit Locker/Safe Custody Article Facility that required banks to enter into revised agreements with the existing locker holders by January 1, 2023.

“However, it has come to the notice of RBI that a large number of customers are yet to sign the revised agreement. In many cases, the banks are yet to inform the customers about the need to do so before the stipulated date (January 1, 2023),” the RBI said.

"Further, there is a need for revision in the Model Agreement drafted by the Indian Banks’ Association (IBA) to fully comply with the revised instructions," the regulator said.

The deadline for banks has been extended in a phased manner by December 31, 2023, with intermediate milestones of 50 percent by June 30, 2023, and 75 percent by September 30, 2023, the RBI said in a release on January 23, 2023.

The regulator has also asked the banks o take steps to make it easier for their customers to execute new or additional stamped agreements with them by setting up stamp papers, franking, electronic execution of agreements, e-stamping, etc. They should also give the customer a copy of the executed agreements.

Further, in cases where operations in lockers have been suspended due to non-compliance with an agreement by January 1, 2023, the same shall be unfrozen with immediate effect, the central bank said.