Planning to rent a bank locker? Here’s what you should know

The Central bank has said that NBFCs and payment system operators can now obtain the Aadhar e-KYC license or sub-KUA license issued by the UIDAI, by submitting their application to the RBI.

Additionally, the banks will no longer be liable if the valuable is lost or even damaged due to natural calamities or an “Act of God” scenarios like earthquakes, floods, lightning or thunderstorm for that matter.

Banks will continue to hold responsiblity for the loss of locker valuables due to fire, theft, burglary, robbery, dacoity, building collapse, etc. But, its liability will be limited to 100 times the annual rent only.

To ensure timely payment of locker rent, RBI has green lit the option for banks to obtain a term deposit while allotting lockers to customers.

A term deposit shall cover three years’ rent and the charges for breaking open the locker in case of any eventuality.

Meanwhile, banks have been suggested by the RBI to not charge for term deposits from the existing locker holders or those who have a satisfactory operative account.

However, "Banks shall have the discretion to break open any locker following due procedure if the rent has not been paid by the customer for three years in a row," RBI was quoted as saying.

Renting cost of a bank locker depends on its size and the branch you choose. The State Bank of India charges Rs 1,500 plus GST annually for a small-sized locker (125x175x492cm) in urban and metro areas.

In rural areas, the country's largest lender charges Rs1,000 plus GST for the same size locker. An extra-large locker at SBI can cost Rs12,000 plus GST annually.

One cannot move a bank locker from one branch to another. You'll have to surrender the existing locker and open a new one at your desired branch if that's what you want.

Further, there is a penalty fee for losing the locker key as well. There are only two keys to a bank locker. One with the customer and the other with the bank.

The new guidelines will come into effect from January 1, 2022. It will apply to both the new and existing safe deposit lockers.