Lok Sabha Question No. 4091 (UNSTARRED), answered on 2018-08-10
Subject: Locker Service in Banks
Ministry: FINANCE
Asked by: VIJAYSINH MOHITE PATIL, DHANANJAY BHIMRAO MAHADIK, RAJEEV SHANKARRAO SATAV, P.R. SUNDARAM, JAYAKUMAR JAYAVARDHAN, P. KUMAR, HEENA VIJAYKUMAR GAVIT, SUPRIYA SADANAND SULE

## GOVERNMENT  OF INDIA

## LOK SABHA

## MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## UNSTARRED QUESTION NO. 4091 TO BE ANSWERED ON THE 10TH AUGUST  2018/ SHRAVANA  19, 1940  (SAKA)

Locker Service in  Banks

4091.  SHRI MOHITE PATIL VIJAYSINH  SHANKARRAO:

SHRI P. KUMAR:

SHRI DHANANJAY  MAHADIK:

SHRI SATAV  RAJEEV:

SHRI P.R. SUNDARAM:

DR. J. JAYAVARDHAN:

DR. HEENA VIJAYKUMAR  GAVIT:

SHRIMATI SUPRIYA  SULE:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether  the Reserve  Bank of India (RBI) has issued instructions  to Banks that  the responsibility of safety  of valuables  kept  by  the customers  in the banks  lockers  lies with  the customers  themselves and if so, the details  thereof;
- (b) the number  of instances  of theft from bank  lockers  that  have been reported  during  the last three years  and the current  year,  State/UT-wise;
- (c) the  action   taken   by   the  Government/RBI   against   those  found  involved   therein   along   with valuables  recovered  during  the said period;
- (d) whether  the Government  proposes to pay  compensation  to bank  customers  in case of theft from bank lockers,  if so, the details  thereof  and if not  the reasons  therefor;
- (e) whether  the Government  is proposing  any  stringent  rule  for the banks,  both  for Public  Sector Banks and private  banks  for their  liabilities  towards  loss or damage of items  kept  by  the customers  in their  lockers,  if so, the details  thereof;
- (f) whether   the  Government/RBI   has  also  conducted   any   review   of  the  security   measures undertaken  by  the banks  across the country  in this regard,  if so, the details  and the outcome  thereof; and
- (g) the steps taken/being  taken  by  the Government/RBI  to strengthen/revamp the security  of the bank lockers  in the country?

## ANSWER

## Minister of State in the Ministry  of Finance (SHRI SHIV PRATAP  SHUKLA)

(a) to (g): Reserve  Bank of India (RBI) has issued instructions  to banks  regarding  the safety  of bank lockers  for exercising  due care and necessary  precaution  for the protection  of the lockers  provided  to the  customer,   reviewing   the  systems   in  force  for  their   operation   on  an  ongoing   basis and  taking necessary   steps,  having   well-documented security   procedures,   properly   training   staff  concerned   in the procedure,  and internal  auditors  ensuring  that  procedures  are strictly  adhered  to. Further,  as per an  RBI  communication to  banks   (in  the  context   of  an  incident   of  bank   burglary in  which   safe deposit   lockers   were   broken   open  and  jewellery reportedly   taken   away),   the  liability of  the  bank depends on the facts and circumstances  of the incident  and that  despite the conditions  of the lease agreement  that  lessees should  insure  the contents  of the lockers,  bank  can be held liable  if negligence is proved  (having  regard  to the conditions  of the strong  room,  the lockers,  the safeguards,  required in the light  of the location  etc.).

As per inputs  from PSBs, banks  exercise  reasonable  care and precaution  for the protection  of the strong  room  and the lockers  provided,  and that  security  measures  including  security  of locker  rooms are  reviewed   periodically. To strengthen   security   of  lockers,   banks   also  monitor   access  to  locker rooms  by  CCTV   cameras  and  install   burglar alarms.   Liability to  compensate   is  governed   by provisions  of extant  applicable  laws,  such as the Indian  Contract  Act,  1872, and as such, no specific legislation  in this  regard  is proposed.

As  per  inputs   from   Public   Sector   Banks   (PSBs),  during   the  last  three   financial   years   and  for  the period  up to 31.7.2018  in the current  financial  year,  43 cases of theft took  place in the lockers  of PSBs and the approximate  amount  of loss reportedly  suffered by  customers  is Rs. 16.8 crore. State / Union  territory-wise details   of  theft   from  bank  lockers  of PSBs, reported  by  PSBs during  the said period,  are at Annexure.  PSBs have informed  that  FIRs were  lodged in all the cases, some arrests have  been  made  by   the  police,   and  valuables   worth   Rs.  6.5  crore   have  been  recovered   so  far  in respect of these cases.

Annexure Details of theft  from  bank lockers reported  by Public Sector Banks during  the financial years 2015-16  to 2017-18  and till  31.7.2018 in financial year 2018-19 Amount in crore  Rs.

|   S. N. | State / Unionterritory            |   Number | Amount           |
|---------|-----------------------------------|----------|------------------|
|       1 | Andman andNicobarIslands          |        0 | 0                |
|       2 | AndhraPradesh                     |        0 | 0                |
|       3 | ArunachalPradesh                  |        0 | 0                |
|       4 | Assam                             |        0 | 0                |
|       5 | Bihar                             |        2 | 2.60             |
|       6 | Chandigarh                        |        0 | 0                |
|       7 | Chhattisgarh                      |        1 | Notascertainable |
|       8 | Dadarand NagarHaveli              |        0 | 0                |
|       9 | DamanandDiu                       |        0 | 0                |
|      10 | NationalCapitalTerritory of Delhi |        0 | 0                |
|      11 | Goa                               |        0 | 0                |
|      12 | Gujarat                           |        0 | 0                |
|      13 | Haryana                           |        0 | 0                |
|      14 | HimachalPradesh                   |        0 | 0                |
|      15 | JammuandKashmir                   |        0 | 0                |
|      16 | Jharkhand                         |        1 | Notascertainable |
|      17 | Karnataka                         |        0 | 0                |
|      18 | Kerala                            |        0 | 0                |
|      19 | Lakshadweep                       |        0 | 0                |
|      20 | MadhyaPradesh                     |        0 | 0                |
|      21 | Maharashtra                       |       30 | 3.26             |
|      22 | Manipur                           |        0 | 0                |
|      23 | Meghalaya                         |        1 | Notascertainable |
|      24 | Mizoram                           |        0 | 0                |
|      25 | Nagaland                          |        0 | 0                |
|      26 | Odisha                            |        0 | 0                |
|      27 | Puducherry                        |        0 | 0                |
|      28 | Punjab                            |        0 | 0                |
|      29 | Rajasthan                         |        0 | 0                |
|      30 | Sikkim                            |        0 | 0                |
|      31 | Tamil Nadu                        |        3 | 0.44             |
|      32 | Telangana                         |        0 | 0                |
|      33 | Tripura                           |        0 | 0                |
|      34 | Uttarakhand                       |        0 | 0                |
|      35 | UttarPradesh                      |        4 | 10.50            |
|      36 | WestBengal                        |        1 | 0                |

Source: Public Sector Banks