What changed
RBI superseded earlier locker guidelines with a comprehensive revised circular, incorporating feedback from banks, IBA, and a Supreme Court judgment. The new rules cover customer due diligence, locker allotment, security standards, nomination, claims settlement, and bank liability. Banks are required to frame Board-approved policies based on these revised instructions.
What it means for you
Banks must overhaul their locker operations to align with stricter CDD, security, and liability norms. The revised liability framework differentiates between natural calamities and events like theft or employee fraud, impacting risk management and insurance coverage. Lenders need to update customer agreements, operational procedures, and staff training to ensure compliance by the effective date.
What you must do
- Review and update your Board-approved policy for safe deposit lockers and safe custody articles to align with the revised RBI instructions.
- Ensure all existing and new locker customers meet the enhanced CDD requirements under KYC Master Directions.
- Revise the model locker agreement and operational guidelines to reflect new liability, nomination, and claims settlement provisions.
- Train branch staff on the revised procedures, especially for handling inoperative lockers and claims after a customer's death.
- Coordinate with your legal and compliance teams to implement the changes by January 1, 2022.
Who it affects
All Scheduled Commercial Banks (including RRBs), All Co-operative Banks, All Small Finance Banks, All Payments Banks, All Local Area Banks
When do the revised locker guidelines take effect?
The revised instructions come into force from January 1, 2022, and apply to both new and existing safe deposit lockers and safe custody articles.
What is the key change in bank liability under the new rules?
The circular differentiates liability: banks are not liable for losses from natural calamities or sole customer negligence, but are liable for events like fire, theft, burglary, or employee fraud.
Do we need a new Board-approved policy for lockers?
Yes, banks must frame their own Board-approved policy and operational guidelines taking into account the revised instructions, superseding earlier policies.