Lok Sabha Question No. 124 (UNSTARRED), answered on 2022-07-18
Subject: Bank Lockers Safety
Ministry: FINANCE
Asked by: Margani Bharat

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO.124

To be answered on the 18 th July 2022/Ashadha27, 1944 (Saka)

Bank Lockers Safety

## 124. SHRI MARGANI BHARAT:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the Bank Locker Safety Rules, 2021 released by Reserve Bank of India;
- (b) the manner in which Ministry justifies allowing banks from absolving their responsibility, if fraud committed by bank employees, theft, etc., and valuables lost from bank lockers;
- (c) whether the customers are at the mercy of banks and receive pittance proposed under Bank Lockers Safety Rules when lockers are meant to secure valuables of customers; and
- (d) the  details  of  protective  measures  that  banks  take  to  safeguard  valuables  from  lockers  of  its customers?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KARAD)

(a) to (d): Reserve Bank of India (RBI) has issued comprehensive revised instructions on Safe deposit locker / safe custody article facility provided by banks vide its circular dated 18.8.2021 in compliance with the Hon'ble Supreme Court Judgment dated 19.2.2021, effective from 1.1.2022. The banks are advised to frame their own Board approved policy/ operational guidelines in this regard taking into account the revised instructions. Some of the key instructions of the said circular includes inter alia the following:

- i) Model locker agreement for adoption by banks;
2. ii) Enhanced standards of safety and security both for mechanical and electronic lockers have been prescribed;
3. iii) The area housing the locker shall remain adequately guarded at all times;
4. iv) Provision of alerts to locker hirer through SMS and email for locker operation;
- v) A detailed procedure has been prescribed for discharge of locker contents by breaking open the locker under various circumstances -at the request of a) customer b) Law enforcement agencies c) Non-payment of locker rent for more than three years d) Locker remaining inoperative for seven years;
6. vi) A  Liability  /  Compensation  policy  has  been  prescribed.  The  banks  shall  also  place  on  their websites,  the  model  locker  agreement,  Standard  Operating  Procedures  and  the  instructions/ policies / procedures regarding the locker facility.

As per the RBI's said circular, the banks have now been held liable for events like fire, theft, burglary, dacoity, robbery, building collapse or in case of fraud committed by the employees of the bank. It is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed. Bank has the responsibility to ensure that the aforesaid incidents do not occur in the bank's premises due to its own shor tcomings, negligence and by any act of omission/commission. In such instances where loss of contents of locker are due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks' liability shall be for an amount equivalen t to one hundred times the prevailing annual rent of the safe deposit locker.

Also, RBI has introduced ' The Reserve Bank Integrated Ombudsman Scheme, 2021' with the objective of  enabling  resolution  of  complaints  if  any,  relating  to  services  rendered  by  banks  to  facilitate  the satisfaction  or  settlement  of  such  complaints.  Banks  take  steps  in  accordance  with  the  said  RBI advice/guidelines.

Banks take various measures to safeguard valuables deposited in lockers of its customers. As informed by Public Sector Banks, locker units are kept either in strong rooms or in a safe as per Bureau of Indian Standards specifications. Bank branches have been provided with security equipments like closed circuit televisions, burglar alarms with passive infrared devices, fire alarm systems covering the entry and exit of strong room and the common areas of operation, besides measures for proper physical security. These arrangements are subject to regular audit of security.

Further, as per the RBI's said circular, banks are ad vised to take necessary steps to ensure that the area in which the locker facility is housed is properly secured to prevent criminal break-ins and to securely protect against any natural/ man-made hazard damaging the lockers. The standards/ benchmarks have also been prescribed for the lockers installed by the banks.

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