SBI bank locker charges increased with effect from March 31

The State Bank of India (SBI) has announced a hike in its safe deposit rental charges with effect from March 31, 2020. According to an announcement on the bank's website, rental charges have been increased by Rs 500-3,000 depending the on the size of the locker and the city the account holder has the locker in.

For instance, for a small locker in a metro or urban city, the rental charge has been increased by Rs 500 to Rs 2,000. For a large locker, the fees has been hiked by Rs 2,000 to Rs 8,000 in metro and urban cities. While in semi-urban and rural areas, the charge has been increased by Rs 1,000 to Rs 6,000. (These rates do not include Good and Services Tax, i.e., GST.)

Revised safe deposit locker rental charges

Population group	Metro and urban		Semi urban and rural
Locker size	Existing charges (Rs)	Proposed charges (Rs)	Existing charges (Rs)	Proposed charges Rs)
Small	1,500	2,000	1,000	1,500
Medium	3,000	4,000	2,000	3,000
Large	6,000	8,000	5,000	6,000
Extra large	9,000	12,000	7,000	9,000

(Charges excluding GST)
Source: SBI website

What are bank lockers?
Safe deposit lockers are one of the most important facilities offered by a bank. 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.

A locker can be operated by an individual-alone or jointly with someone, HUFs, firms and trusts. The applicant may have to open a bank account in the branch before being allowed to apply for a locker.

To open a locker, you will have to provide KYC documents, along with photographs.

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.