Behavioural biases that damage your investments!
In matters of investment, the sooner you acknowledge your mistakes, the sooner you'll find help in getting out of the soup. To break free from biases, the first step should be to identify those biases, says, Balwant Jain, Tax and Investment Expert.
When did you last visit your bank for accessing the bank locker. If it has been long and you cannot recall the last visit, then it is probably time to visit the bank branch. This is because generally a bank locker agreement has a clause which gives the bank the right to open the locker, even if the rent is paid regularly. The clause states that in case the locker remains unoperated for more than one year the bank can cancel your allotment and open the locker.
Before opening the account banks ask you reasons for not operating the locker. In case of genuine reasons as in the case of NRIs who are out of town banks may allow the hirer to continue with the locker. In case the hirer does not respond banks consider opening the lockers after giving due notice to him.
The RBI website states, “Where the lockers have remained unoperated for more than three years for medium risk category or one year for a higher risk category, banks should immediately contact the locker-hirer and advise him to either operate the locker or surrender it. This exercise should be carried out even if the locker hirer is paying the rent regularly. Further, the bank should ask the locker hirer to give in writing, the reasons why he / she did not operate the locker. ” Banks carry out customer due diligence for both new and existing customers classified as higher and medium risk. If the customer is classified in a higher risk category, customer due diligence as per KYC norms applicable to such higher risk category are carried out.
Supreme Court Ruling
Last week the Supreme Court came down on banks stating that the present state of regulations on the subject of locker management is inadequate and muddled. The ruling said that each bank is following its own set of procedures and there is no uniformity in the rules. It is important that RBI lays down comprehensive directions mandating the steps to be taken by banks with respect to locker facility management.
Supreme Court was hearing a case involving United Bank of India, where the bank had broken a customer’s locker without informing him.
The Court said, “The banks should not have the liberty to impose unilateral and unfair terms on the consumers. In view of the same, we direct the RBI to issue suitable rules or regulations as aforesaid within six months from
the date of this judgment.”