Locker theft, fraud by staff, fire: RBI caps bank liability to 100 times rent from January 2022

The Reserve Bank of India has issued revised guidelines for the hiring of lockers under which the liability of banks will be limited to 100 times its annual rent in case of fire, theft, building collapse or frauds by bank employees. According to the revised guidelines, which shall come into effect from January 1 next year, banks will be required to incorporate a clause in the locker agreement prohibiting the hirer from keeping anything illegal or hazardous in lockers.

The RBI said it has reviewed the ‘Deposit Locker/Safe Custody Article Facility provided by the banks’ after taking into consideration various developments in the area of banking and technology, nature of consumer grievances and also the feedback received from banks and Indian Banks’ Association (IBA). The review also takes into account, the principles enumerated by the Supreme Court in ‘Amitabha Dasgupta vs United Bank of India’.

The revised instructions will be applicable to both new and existing safe deposit lockers and the safe custody of articles facility with the banks.

The RBI said banks need to maintain a branch-wise list of vacant lockers as well as a wait-list in Core Banking System (CBS) or any other computerised system compliant with Cyber Security Framework, for the purpose of allotment of lockers and ensure transparency in allotment of lockers.

“The banks shall acknowledge the receipt of all applications for allotment of locker and provide a wait list number to the customers, if the lockers are not available for allotment,” as per the instructions.