Many people are afraid to keep gold and valuable documents at home. That is why most of us rely on bank lockers. The belief behind this is that it is the safest place for our savings. But how true is that belief? Will the bank take responsibility if the items kept in the locker are stolen or destroyed in natural disasters? Many people do not have a clear understanding of this.
The new bank locker rules clearly define the responsibilities of both the customer and the bank. Every person should be aware of these things before taking a locker. Otherwise, they will have to bear huge losses in the future.
When is the bank not responsible?
As we may think, the bank is not fully responsible for the contents of the locker in all situations. This becomes clear if we examine the locker agreement of major banks like State Bank of India (SBI). In certain circumstances, the bank can intervene.
The bank will not be liable for any damage to the items in the locker due to natural disasters like flood, earthquake, lightning, riots, war, terrorist attacks. This is clearly stated in the agreement. That is, the customer will have to bear the entire loss in such unexpected events.
Moreover, the bank will not be held responsible for any loss caused by any mistake or negligence on the part of the customer. For example, situations like not locking the locker properly or losing the key can be a headache for the customer.
What happened in Delhi recently?
A recent incident in Delhi reminds us that bank lockers cannot be trusted to be completely safe. A woman filed a complaint that her gold jewellery worth Rs 60 lakhs was missing from a branch of a leading bank in Kirti Nagar. While the police say that the locker was opened following all the procedures in the presence of bank officials, the complainant is adamant that her jewellery was stolen. The incident has sparked a lot of debate.
What happens if the locker is used illegally?
Bank lockers are provided for legal purposes only. Nothing illegal like drugs, weapons, explosives or black money should be kept in the locker. If the bank suspects that the customer is misusing the locker, they have the authority to take strict action.
In such cases, the bank may, following legal procedures, open and inspect the customer’s locker and revoke the right to use the locker. This will be considered a breach of the locker agreement and legal action will be taken against the customer.
Can the bank open the locker without informing the customer?
In certain circumstances, the bank has the authority to open the locker without the customer’s knowledge or consent. Let’s see when this happens:
- Rent arrears: If the locker rent is not paid for three consecutive years, the locker can be opened after giving a warning to the bank.
- Inoperative locker: If the locker is not opened or operated for seven consecutive years despite the regular payment of rent and the customer cannot be contacted in any way, the bank has the authority to open the locker. This is often a concern for NRI investors abroad.
- Upon termination of the contract: If the bank issues a notice requesting the customer to vacate the locker and the customer does not vacate the locker within the period specified in the notice, the bank may open it and replace the items.
When opened in this way, the bank will transfer the items in the locker to a separate account and hand them over when the customer comes back later. However, the costs of this will be charged to the customer.
What are the other charges besides rent?
It is not enough to pay only the annual rent when using a bank locker. The customer should be aware of many other charges. These may vary from bank to bank.
- Registration Charge: This is a one-time fee payable when picking up the locker.
- Visit Charge: There will be a limit to the number of free visits to the locker in a year. If you visit more than that, you will have to pay an additional charge.
- Rent arrears penalty: If the rent is not paid on time, a penalty will be charged.
- Break open charge: If the bank has to open the locker in the above circumstances, the cost will be charged to the customer.
Often, banks require a term deposit to be opened at the time of allocating a locker, which covers three years of rent and charges for opening the locker. This is a security measure for the bank.
How to secure your savings?
It is now clear that bank lockers have many limitations. So, there are some things to keep in mind when taking a locker. Before signing the agreement that explains the bank locker rules, read it completely. If you have any doubts, ask for clarification. It is a good idea to prepare and keep a list of valuables that you keep in the locker. If possible, keep a photo of the jewelry and bills on hand. This will help in case of any disputes in the future.
Remember, a bank locker is only a security measure, not a complete guarantee. It is our responsibility as consumers to be vigilant.
