Sudden jump in demand for bank lockers as people move cities

The demand for bank lockers is on the rise as it offers the least expensive option for safe keeping your documents, ornaments, precious metals and cash at a nominal rate. As people move out of cities in large numbers to escape the wrath of the pandemic, safe deposit lockers are an important necessity.

Many investors have moved to investing in gold, after the prices dropped from the peak which raised the prospect of an imminent surge (in the new financial year, it has already moved up nearly 8-10%). They are now looking for lockers too.

However, most bank branches are finding it difficult to expand their locker capacity despite a sudden spurt in demand. In cities, finding a locker in your neighbourhood may be a difficult task. Banks generally ask customers to stay in the queue for one’s turn. The other option is to scout for nearby branches and other banks for the facility.

For the existing bank customers, it is a matter of time to complete the paper work and the formalities. Others will have to open a new current/savings account. Most banks demand a fixed deposit, starting from Rs 10,000 and going up to Rs 2 lakh and even more, depending on the size of the locker and the city/location.

Some banks offer 3-4 type lockers — small, medium, large, extra-large, but a majority of them offer two types – small and large. A locker can be hired by submitting your KYC documents, passport size photographs, your current or savings account details and security deposit. You need to fill up a locker agreement too, with stamp duty payable as per respective state laws.

There is an annual rent, and banks provide a hassle-free payment facility. It could anywhere in the range of Rs 2,000 to Rs 20,000 per annum, plus tax. Some banks offer discounts / waiver looking at the customer’s profile. You can pay the rent directly from your account by giving a debit authorisation. One can visit and access your locker on all working days during banking hours, but there will be a fixed number of visits for every bank – mostly 12 visits annually, beyond which they will charge a levy per visit.

Lockers can be operated during the specified timing displayed at the bank branch where you maintain your locker. A bank employee (usually of an officer cadre) is designated by the bank branch to be in-charge of the lockers. To open the locker, you need a pair of keys. One key is with the bank typically with in-charge of lockers and the other is with you (the customer). Both keys are required together to open the locker. After the locker is opened, the bank officer will leave the place, allowing full privacy to the customer. Once you have completed the locker operations, you just need to shut it locker and come out. The locker can be locked with one key.

Banks also provide a nomination facility to individuals / joint hirers to facilitate the release of contents as and when required.

According to the bank locker operation regulations of the Reserve Bank of India (RBI), if the locker has not been operated for a continuous period of one year by a customer of high-risk profile or for a continuous period of 3 years by a customer of medium risk profile, then the bank has the authority to insist the hirer to operate the locker immediately. Banks may also send you an advance notice suggesting you to either operate the locker or surrender it. In case you are not willing to operate the bank locker any time soon, you may like to surrender it.

If the customer does not provide reason for non-operation of the locker or the reason is found to be not genuine, nor operate the locker within the given period, it is a bank’s prerogative to provide due notice to the customer and proceed with cancellation of the locker allotment and open the locker. These provisions shall be applicable even if the rent for the locker is paid regularly by the customer. However, banks are a little lenient with their rules now since many families have shifted their base temporarily in the wake of the pandemic.

If the key of the locker, supplied by the bank is lost by the customer, the branch should be informed without any delay. Opening a locker is a tedious process. All charges for opening the locker, replacing the lost key and of changing the lock, shall be payable by the customer.