Just a month to go, many senior citizens don’t know of locker rule change

As the December 31 deadline to implement RBI's revised bank locker rules nears, many banks are yet to execute the same. Some banks were also found to be confused about the rules. This despite RBI, via a notification on August 18, 2021, asking them to start the process from January 1, 2022. mid-day visited banks in the city and spoke to locker holders, a majority of whom said their banks had not yet informed them of it.

During mid-day's conversations with locker holders, it was found that they, especially senior citizens, were unaware of the change in rule. As per the notification issued by the Reserve Bank of India, banks were expected to start the process to get their customers to enter the new locker agreement from January 1, 2022. And banks are free to utilise the sample locker agreement drafted by the Indian Banks' Association.

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Satish Matkar, 72, a customer at Canara Bank, Kandivli

"Banks shall ensure that any unfair terms or conditions are not incorporated in their locker agreements. Further, the terms of the contract shall not be more onerous than required in the ordinary course of business to safeguard the interests of the bank. Banks shall renew their locker agreements with existing customers by January 1, 2023," the notification reads.

‘Bank officials frazzled'

Shashikala Singh, 63, who has a locker with the Dahisar East branch of the State Bank of India, said she learnt of the new rule from a neighbour. "I have a joint locker with my husband at the branch. I heard from someone on Tuesday that December 31 is the last day to execute the new agreement. There was no communication from the bank. As I have to go to Uttar Pradesh soon, I rushed to the bank to inquire about the procedure. The senior associate gave me a surprised look when I asked her about the new rule. She then told me the new rule was applicable only for new customers and if existing customers wanted to change their nomination or transfer the locker."

After Singh insisted, the staff inquired with her senior official who said the bank would get back to her about the same. "The staff informed me that there are a bunch of new forms that have come, but not one of their over 400 locker holders has executed the procedure yet. The staff added that they are yet to clarify how to get customers to execute the new agreement. I have been a customer of this SBI branch for over two decades, and the staff has been very helpful. I feel the RBI should issue clear instructions to the banks," she added.

Devji M Bhadra, 72, who holds a locker at SBI's Vidyavihar branch, said, "I am not aware of any new locker rules and have not received any such communication from my bank. Shouldn't they widely publicise it if this really is for the safety of customers? I will visit my bank branch and inquire about this. However, I am not worried about the deadline as it was the bank that did not inform us. We are not at fault."

‘Process was smooth'

While many are unaware or are facing confusion, executing the new agreement was smooth for a few. Satish Matkar, 72, who has a joint locker with his daughter at Canara Bank, Kandivli branch, said the bank informed him about it last month. "I went to the bank immediately after that. They provided me with both the form and stamp paper. I signed it with my daughter and submitted it. The procedure was hassle-free. However, I have another locker in UCO Bank, but the bank is yet to inform me. If banks inform customers in time, there will be no rush and the process can be executed smoothly."

‘Rule not transparent'

Vishwas Utagi, vice-president of All India Bank Employees Association, said, "The new rule is a one-sided game and not actually customer friendly. To analyse it clearly we need to understand that lockers are safety vaults and are supposed to be secret. So many banks are getting shut down, and at that time, liquidators and banks need the customers' permission to open the locker. The new rule, I feel, is a well-planned and calculated step to get things in favour of banks instead of customers."

"There is no transparency here. Majority of locker holders are unaware of this new rule. How many banks have informed or intimated their customers about executing its rule? They only make people run at the last minute, the same happened during demonetisation. They might extend the deadline till March, but there will be queues and people will suffer," added Utagi.

What new rule says

RBI allowed banks to take ‘term deposit' at the time of locker allotment. This will cover three years' rent and charges for breaking open the locker in case of such an eventuality.

Terms of new locker rules

>> Banks should not insist on term deposits from existing locker holders or those who have a satisfactory operative account
>> Banks will have the discretion to break open any locker following due procedure if the customer has not paid the rent for three years in a row
>> Banks should acknowledge the receipt of all applications for allotment of the locker and provide a waitlist number to customers if the lockers are not available for allotment
>> Banks will have to maintain a branch-wise list of vacant lockers as well as waitlisted customers in the core banking system
>> Banks have been instructed to put in place a board-approved policy outlining the responsibility owed by them for any loss or damage to the contents of lockers due to their negligence
>> Banks shall not be liable for any damage and/or loss of contents of locker arising from natural calamities like earthquake, floods, lightning, and thunderstorm, or any act that is attributable to the sole fault or negligence of the customer
>> Liability of banks will be limited to 100 times of the annual rent in case of fire, theft, building collapse or fraud by bank employees
>> Banks shall incorporate a clause in the locker agreement that the locker-hirer/s shall not keep anything illegal or any hazardous substance in the locker. If the bank suspects such an act, the bank shall have the right to take appropriate action against the customer as it deems fit and proper

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