Bank Locker Rule: Keeping valuables safe is a top priority, and bank lockers offer a secure solution. But what happens if there’s a fire, theft, or damage to your locker? Understanding bank locker rules regarding compensation is crucial.
Annual Rent and Locker Agreement
Banks offer various locker sizes at different rental fees depending on location. The rent needs to be paid upfront before the year starts. To ensure clarity on rights and responsibilities, a signed locker agreement (by both bank and customer) is essential. The Reserve Bank of India (RBI) mandated banks to issue and get these agreements signed by December 31, 2023.
Inactive Lockers
If you haven’t used your locker for seven years despite paying rent, the bank can take action. They might transfer the contents to your nominees/legal heirs or dispose of them transparently. However, a proper protocol will be followed before opening the locker.
Compensation for Loss or Damage
The bank is liable for any loss or damage to your belongings due to their negligence in maintaining the locker system. In specific situations like fire, theft, burglary, robbery, or building collapse, the bank is obligated to compensate you.
Compensation Amount
The compensation amount is capped at one hundred times your annual locker rent, regardless of the value of your belongings inside. So, if your rent is Rs. 2,000, the bank will pay a maximum of Rs. 2,00,000.
Bank’s Responsibility
As per the State Bank of India (SBI) website, branches are responsible for ensuring the safety of lockers from incidents like fire, theft, or negligence by their staff. In such cases, the bank’s liability is limited to one hundred times the annual rent.
