The Supreme Court has asked the RBI to fix regulations in the case of banks’ locker facility management within six months. The Supreme Court has commented that the bank cannot lose its responsibility to the customer in the matter of locker operations.
The Supreme Court said that banking institutions have a very important role in the current globalization era. He has an important role in the life of common people. Banks have an important role in domestic to international transactions. People hesitate to keep their movable property in homes. Even we are moving towards cashless economy. In such a situation, it is important that the service of locker etc. has become mandatory for banking institutions.
Decision pronounced on United Bank of India
The decision was pronounced by a bench of Justices MM Shantanagoudar and Vineet Saran on Friday on a petition filed by a customer Amitabh Dasgupta against United Bank of India. The Supreme Court has ordered the United Bank of India to pay damages of five lakh rupees and one lakh rupees of litigation costs to the petitioner, attributing the deficiency in service under the Consumer Protection Act.
Amitabh Dasgupta had accused the bank that despite paying the locker rent, the bank broke the locker without informing him on the basis of not paying the rent on time. He was not even informed of breaking the locker. When he went to the bank to operate the locker after about a year, he came to know about it and the bank did not return his seven jewelery kept in the locker. Returned only two ornaments.
The bench said that the customers are completely dependent on the bank, which is a very capable party to protect their property. The apex court said, “In such a situation, banks cannot turn their back on this matter and claim that they do not have any obligation to their customers to operate the locker”. The bench said, “Such a step by the banks is not only a violation of the relevant provisions of the Consumer Protection Act, but also damages the confidence of investors and our credibility as an emerging economy.” The court said, “Therefore, it is necessary that RBI should bring a comprehensive guideline, which mandates what steps banks should take in the context of locker ….” The apex court said that banks should not have freedom They impose unilateral and unfair conditions on customers. The bench said, “In view of this, we instruct the RBI to make suitable rules in this context in six months of this order.”
Supreme Court Guidelines
1- Maintain the bank locker register and register the key of the locker and will keep updating it
2- The locker will inform the original allottee before allotting it to someone else and give him a chance to remove the goods.
3- The bank’s custodian will maintain a record about the locker separately.
Banks will ensure that the system is safe from hacking and security breeches if the locker has an electronic system.
5- Banks can break the locker only according to RBI’s rules and the customer will be given notice before doing so
6- Banks will adopt proper verification process so that no illegal party can reach the locker
7- A copy of the locker rental agreement will be given to the customer, so that he knows his rights and obligations