New agreement for lockers: currency, weapons, drugs can’t be stashed

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If you have a locker, prepare to sign a fresh agreement with your bank. Reserve Bank of India has directed banks to draw up a new agreement with their customers for lockers clearly stating the dos and don’ts. While documents and valuables such as jewelleries can be stored in lockers, cash, weapons, hazardous substances or narcotics are to be declared as strict no-nos. RBI has informed the banks that these should be clearly mentioned in the fresh agreements that have to be drawn up with the customers.

Prevent misuse

The new agreement follows from a model of the Indian Banks Association. It is clear from the rules that the broad objective of the authorities is to prevent any possible misuse of bank lockers to stash illegal cash/currency and even hazardous substances, narcotics and even weapons.

It will also be mentioned in the agreement that the rights of using the locker cannot be transferred by the person to whom it is granted to anyone else. It has to be operated by the customer only.

Furthermore, banks will be well within their rights to refuse access to a locker if the customer fails to establish his/her identity properly. Banks can ask customers to furnish proof of their identity whenever they want.

Customer responsility

Therefore, the customer becomes liable to ensure proper use of the locker facilities. If the key to the locker is misused, the customer would be solely responsible. The bank cannot be held responsible for such misuse. However, if the valuables kept in a locker are found missing, remedy would be available as dictated by the rules applicable at that time.

To conclude the agreement, banks have to bear the cost of the stamp paper. But this will applicable for new agreements with existing customers. Customers seeking new lockers have to pay for their own stamp papers.

Banks can also realise the rent of the locker from the account of the customer if the rent/dues are not cleared in time. Earlier RBI had asked banks to conclude agreements with their customers of lockers by January 1, 2023. However, later the deadline was shifted to December 31 this year in a move that granted major relief to customers.