Tuesday, 19 October 2021

New guidelines for a locker by RBI to Banks

New guidelines for a locker by RBI to Banks

RBI directed all banks to maintain a branch-wise list of vacant lockers and a waitlist for allotment of lockers and ensure transparency in the distribution of lockers. Revised instructions will come into effect from January 1, 2022, the RBI said.

RBI said.

"In order to facilitate customers to provide choices, banks shall maintain a branch wise list of vacant lockers as well as a waitlist in (CBS) Core Banking System or any computerized system compliant with Cyber Security Framework issued by RBI, for the purpose of allotment of lockers and ensure transparency in allotment of lockers,"

The banks, the central bank said, shall acknowledge the receipt of all applications for allotment of the locker and provide a waitlist number to the customers if the lockers are not available for distribution.

As per new guidelines, existing customers of the bank who have made an application for a locker facility and are fully compliant with the CDD (Customer Due Diligence)

Criteria may be giving the facilities of safe deposit lockers and safe custody articles subject to ongoing compliance.

New guidelines for a locker by RBI to Banks 1getty image

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Customers who are not having any other banking relationship with the bank may be giving the facilities of safe deposit locker/safe custody article, it said.

It added.

The RBI said banks should incorporate a clause in the locker agreement that the locker-hirer/s shall not keep anything illegal or any hazardous substance in the Safe Deposit locker. "If the bank suspects the deposit of any illegal or hazardous substance by any customer in the safe deposit locker, the bank shall have the right to take appropriate action against such customer as it deems fit and proper in the circumstances,"

It said.

The central bank further states that banks shall have a Board approved an agreement for safe deposit lockers. For this purpose, it said banks might adopt the model locker agreement to be framed by IBA.

"This agreement shall be in conformity with these revised instructions and the directions of the Hon'ble Supreme Court in this regard. Banks shall ensure that any unfair terms or conditions are not incorporated in their locker agreements,"

RBI said.

"The terms of the contract shall not be more onerous than required in ordinary course of business to safeguard the interests of the bank. Banks shall renew their locker agreements with existing locker customers by January 1, 2023,"

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