RBI Issues New Instructions On Locker Management: What You Need To Know

The Reserve Bank of India (RBI) issued revised instructions for all banks regarding locker management following orders of the Supreme Court on Wednesday, August 18. In its circular, the RBI said that to ensure transparency in the allotment of lockers, banks should maintain a branch-wise list of the vacant lockers and a wait-list in the core banking system or any other computerised system – which is compliant with cyber security framework issued by the regulating authority. 

The revised instructions for the locker management system will come into force from January 1, 2022, according to the RBI, and will be applicable to both new and existing safe deposit lockers as well as the safe custody of articles facility with the banks.

For the model locker agreement, the RBI stated that at the time of allotment of the locker to a customer, the bank should enter into an agreement with that customer to whom the locker facility is provided, on a paper duly stamped.

The central bank added that a copy of the locker agreement in duplicate signed by both the parties should be furnished to the locker-hirer to know his/her rights and responsibilities. The original agreement should be retained with the bank’s branch where the particular locker is situated.

The banks should acknowledge the receipt of all applications for the allotment of the locker and provide a waitlist number to the customers if the lockers are not available for allotment, according to RBI.

Earlier this year, the Supreme Court bench of Justices Mohan M Shatanagoudar and Vineet Saran asked the RBI to frame uniform rules for all banks across the country regarding the locker management system within a period of six months.