How to hire a safe deposit locker with a bank

One of the important services banks offer customers is the provision of safe deposit lockers. The lockers come in different sizes and are used for safe keeping of valuables. Only the locker hirer or joint hirers can operate the locker.

Who can apply
An individual–alone or jointly with someone, HUFs, firms and trusts can open a safe deposit locker. The applicant may have to open a bank account in the branch before being allowed to apply for a locker. A minor cannot apply for a locker.


Form and agreement
All applicants must sign the application form. A locker letting agreement is entered between the hirer(s) and the bank. In case of joint applicants, all should be present at the branch for signing of the agreement.

KYC
The applicants should provide KYC documents, along with photographs.

Fixed deposit to cover locker rent
A bank may ask applicants to start a fixed deposit to cover the locker rent for three years and also charges for breaking open the locker in case of an eventuality. Applicants typically give a standing instruction to the bank to deduct the annual rent from the account maintained by them.

Non-operation of locker
If the hirer does not operate the locker (even though he pays rent) for a continuous period of one year (in case of a high risk profile) or three years (in case of a medium risk profile), the bank may ask the hirer to immediately operate the locker or surrender it.

Points to note
1. It is important to keep locker keys safely as one could have to do a lot of paperwork if the locker keys are lost.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)