Bank Locker Rules: There are certain things that you must be aware of while taking a locker from a bank such as the agreement, the charges levied for the same and the rights of the customers regarding the locker.
Bank Locker Rules: Any individual can open a locker in any bank in their name, irrespective of whether they have an existing banking account there or not. But very few people know about bank locker rules. This article is essential to understand the complexities and your rights as a customer. It aims to provide an understanding of the bank locker agreement, the charges incurred for it and the rights of customers related to lockers. You must know about these 5 things related to bank locker rules.
5 important things related to bank locker rules
1. The first thing to understand is that any individual can open a locker in any bank, irrespective of whether they have an existing banking account there or not. Even if you do not have any prior relationship with a bank, the applicant is still eligible to get a safe deposit locker. For example, suppose you keep your salary account in Bank A, keep your savings in Bank B, and you have Bank C nearby, where you have no relationship. In such a case, you can still approach Bank C for a bank locker. However, you will need to complete the KYC process.
2. Another common problem faced by many people is that the bank informs them that there are no lockers available. However, in August 2021, after several changes in norms, banks are now maintaining a record of vacant lockers as well as waiting lists of customers. So, when you apply for a locker at a bank, they have to accept your application, respond to it, and either give you a locker of your choice if it is available, or provide you with a waiting list number.
3. The third aspect to consider is that if you want to secure the locker, the bank may request you to open a fixed deposit (FD). This requirement is usually imposed on new customers, especially those who are new to the bank. But the bank cannot demand an FD for any arbitrary amount. There is a specific amount of FD. As per the rules, the FD fee is funded with an amount equal to three years of rent. If the rent is not paid for three years and there are no operations, the locker can be taken back.
4. One rule to keep in mind while taking a bank locker is the name of the nominee in the locker. Many people ignore the importance of nomination when it comes to lockers. However, it is mandatory for banks to provide nomination facility. It is important to have a nominee associated with your locker and understand the rights of the nominee and his rights. Apart from this, it is also necessary to understand what action the nominee should take in case of the unfortunate death of the locker holder.
5. The last and important thing to remember is that the items you keep in the locker are not insured. The bank cannot insure the contents of your locker. Though the bank bears some liability, that too is limited. The bank’s liability is limited to 100 times the annual locker rent. If the annual rent of your locker is Rs 5000, you will get protection against losses up to Rs 5 lakh. This coverage covers incidents like fire, theft, robbery and building collapse. So, if you keep valuable items like jewellery in the locker, it is advisable to get them evaluated by an expert and insured separately.
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