What changed
The original deadline of January 1, 2023, for renewing locker agreements has been extended to December 31, 2023, in a phased manner. Banks must now notify customers by April 30, 2023, and achieve 50% execution by June 30, 2023, and 75% by September 30, 2023. IBA will revise the Model Agreement by February 28, 2023, and banks must unfreeze any lockers frozen due to non-execution.
What it means for you
Banks have more time to complete locker agreement renewals, but must meet strict interim targets and report monthly on DAKSH. The RBI is ensuring customer protection by mandating that compensation policies from the August 2021 circular apply even if not in existing agreements. Banks may need to bear stamp paper costs for supplementary agreements and facilitate e-stamping or electronic execution.
What you must do
- Notify all existing locker customers about revised agreement requirements by April 30, 2023.
- Ensure at least 50% of customers execute revised agreements by June 30, 2023, and 75% by September 30, 2023.
- Unfreeze any lockers frozen for non-execution of agreement with immediate effect.
- Report compliance status monthly on the DAKSH supervisory portal.
- Prepare to execute fresh or supplementary agreements if IBA's revised Model Agreement differs from already executed ones, bearing stamp paper costs.
Who it affects
All commercial banks including RRBs, Small Finance Banks, Payment Banks, and Local Area Banks, All co-operative banks, Existing locker customers, Indian Banks' Association (IBA)
What is the new deadline for locker agreement renewal?
The deadline is extended to December 31, 2023, with interim milestones: 50% by June 30, 2023, and 75% by September 30, 2023.
What should banks do if they already executed agreements that differ from the revised IBA Model Agreement?
Banks can execute fresh agreements or revise them via supplementary agreements, bearing stamp paper costs. All provisions of the August 2021 circular, especially Part VII on compensation, still apply.
What action is required for lockers frozen due to non-execution?
Banks must unfreeze such lockers with immediate effect to allow customers to execute the revised agreement.