Indian banks can issue Rupay prepaid forex cards: RBI Governor
in

RBI gives people more time to sign new contracts for existing lockers

The Reserve Bank of India (RBI) asked banks in August 2021 to make new agreements with the people who already had lockers by January 1, 2023.

RBI: can now sign a new agreement to use a bank locker until December 31, 2023. This is because the Reserve Bank of India pushed back the deadline to the end of this year because banks didn’t sign a new agreement with their customers by January 1, 2023.

“RBI has found out that a lot of customers haven’t signed the revised agreement yet. Many times, the banks haven’t told their customers that they need to do something before the deadline. So, the deadline for banks to renew agreements for existing safe deposit lockers has been pushed back to December 31, 2023, with interim goals of 50% by June 30, 2023, and 75% by September 30, 2023, according to an RBI circular.

If locker operations have been frozen because an agreement has not been carried out, they need to be unfrozen right away. “Further, banks have been told to make the arrangements needed to make the revised agreements easier to carry out, such as making sure stamp papers are available,” said RBI.

Also read: After Earthquake 8 trapped In Lucknow Building Collapse.

The new rules went into effect for new customers in January 2022 and for people who were already customers in January 2023. The new locker agreement says that the new agreement can’t have any clauses that are unfair to the customers.

RBI sent out a notice on August 18, 2021 that said, “Banks must have an agreement with the Board for safe deposit lockers. To do this, banks could use the model locker agreement that will be made by IBA. This agreement must be in line with these updated instructions and the Supreme Court’s orders in this area.”

RBI

“Banks must make sure that their locker agreements don’t have any terms or conditions that are unfair. Also, the terms of the contract can’t be harder than what would be needed in normal business to protect the bank’s interests. By January 1, 2023, banks that already have locker customers must have renewed their locker agreements with those customers.”

One of the most important parts of the agreement says that if a bank is responsible for something like a fire, theft, burglary, robbery, building collapse, or fraud committed by a bank employee, they will have to pay an amount equal to 100 times the annual rent of the safe deposit box.
“It is the bank’s job to make sure that things like fire, theft, burglary, robbery, dacoity, and building collapse don’t happen on the bank’s property because of the bank’s own mistakes, lack of care, or intentional or unintentional actions. As banks can’t say they have no responsibility to their customers if the contents of a safe deposit box are lost, if the loss is caused by one of the things listed above or by fraud committed by an employee, the bank will have to pay an amount equal to one hundred times the annual rent of the safe deposit box.

Concerning the customer’s insurance of the locker’s contents, the agreement says that “banks shall make clear in their locker agreement that they do not keep a record of the locker’s contents or of any items taken out or put in by the customer, so they are not responsible for insuring the locker’s contents against any risk.” Banks aren’t allowed to offer any kind of insurance product to people who rent lockers from them, either directly or indirectly.

Written by Mallika Dureja

Egypt's President Abdel Fattah El-Sisi comes to Delhi to be the main guest at the Republic Day parade

Egypt’s President Abdel Fattah El-Sisi comes to Delhi to be the main guest at the Republic Day parade

While scoring his fourth ODI century, Shubman Gill tied Babar Azam for the all-time record

While scoring his fourth ODI century, Shubman Gill tied Babar Azam for the all-time record