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Bank Locker Rules: Any person can open a locker in any bank in his name, irrespective of whether he has an existing banking account there or not. But very few people know about bank locker rules. This article is essential to understand the complexities and your rights as a customer. It aims to provide an understanding of the bank locker agreement, the charges levied for it and the rights of customers related to the locker. You must know these 5 things related to bank locker rules.
5 important things related to bank locker rules
1. The first thing to understand is that any individual can open a locker in any bank, irrespective of whether he has an existing banking account there or not. Even if you do not have any previous relationship with any bank, the applicant is still eligible to get a safe deposit locker. For example, suppose you hold your salary account in Bank A, your savings in Bank B, and you have Bank C, where you do not have any relationship. In such a case, you can still approach Bank C for a bank locker. However, you will have to complete the KYC process.
2. Another common problem faced by many is that the bank informs them that there are no lockers available. However, in August 2021, after several changes in the norms, banks are now maintaining a record of vacant lockers as well as the waiting list of customers. So, when you apply for a locker at a bank, they have to accept your application, respond to it and either give you the locker of your choice, if it is available, or provide you with a waiting list number.
3. The third aspect is that if you want to keep the locker safe, the bank may request you to open a fixed deposit (FD). This requirement generally applies to new customers, especially those who are new to the bank. But the bank cannot demand an FD for any arbitrary amount. The FD has a fixed amount. As per the rules, the FD fee is funded by an amount equal to three years' rent. If the rent is not paid for three years and there is no operation, the locker can be taken back.
4. One rule to keep in mind while taking a bank locker is that the locker should have the name of the nominee. Many people ignore the importance of the nominee when it comes to lockers. However, it is mandatory for banks to provide the facility of a nominee. It is important to have a nominee associated with your locker and understand the rights and entitlements of the nominee. Apart from this, it is also important to understand what action the nominee should take in case of the unfortunate death of the locker holder.
5. The last and important thing to remember is that the items you keep in the locker are not insured. The bank cannot insure the items kept in your locker. Though the bank bears some liability, that too is limited. The liability of the bank is limited to 100 times the annual rent of the locker. If the annual rent of your locker is Rs 5000, you will get protection against losses up to Rs 5 lakh. This coverage covers incidents like fire, theft, robbery and building collapse. So, if you keep valuables like jewellery in the locker, it is advisable to get them appraised by an expert and insured separately.