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RBI Extends Deadline for Revised Bank Locker Agreements to December 31, 2023
RBI Extends Deadline for Revised Bank Locker Agreements to December 31, 2023
The Reserve Bank of India (RBI) has extended the deadline for banks to get all locker holders to sign a revised bank locker agreement to December 31, 2023. This extension was made due to a large number of customers facing difficulties in executing the revised agreement by the previous deadline of January 1, 2023. The RBI had asked banks to assist their clients in the execution of fresh/supplementary stamped agreements with their customers by taking measures such as arranging stamp papers, electronic execution of agreement, e-stamping, etc. and provide a copy of the executed agreement to the customer. Banks are advised to notify all their customers of the revised requirements by April 30, 2023 and ensure that at least 50 per cent and 75 per cent of their existing customers have executed the revised agreements by June 30 and September 30, 2023 respectively.
Key Takeaways:
1. The RBI has extended the deadline for banks to get all locker holders to sign a revised bank locker agreement to December 31, 2023.
2. Banks are advised to notify all their customers of the revised requirements by April 30, 2023 and ensure that at least 50 per cent and 75 per cent of their existing customers have executed the revised agreements by June 30 and September 30, 2023 respectively.
3. According to a Times of India news report, while the majority of customers have completed the formality, 10-20% of customers still need to do so. Some banks have introduced digital locker agreements, but there have been issues with the availability of the online facility.
4. The original deadline for the new agreement was January 2023, but scarcity of stamp paper caused a major inconvenience for bank customers.
5. The RBI circular dated January 23, 2023, stated that lockers had been locked due to non-execution of agreement by January 1, 2023, and that the same should be unfrozen immediately.
The Reserve Bank of India (RBI) has extended the deadline for banks to get all locker holders to sign a revised bank locker agreement to December 31, 2023. The RBI has asked banks to assist their clients in the execution of fresh/supplementary stamped agreements with their customers by taking measures such as arranging stamp papers, electronic execution of agreement, e-stamping, etc., and provide a copy of the executed agreement to the customer.
According to a Times of India news report, while the majority of customers have completed the formality, 10-20% of customers still need to sign the revised agreements. Some banks have introduced digital locker agreements, which can be completed through e-stamp and e-sign, but there have been issues with the availability of the online facility.
As for the question of whether the locker will be frozen if the revised agreement is not signed, the RBI circular dated January 23, 2023, states that if operations in lockers have been frozen for non-execution of the agreement by January 1, 2023, the same should be unfrozen with immediate effect. This means that the locker should not be frozen if the revised agreement is not signed, as per the RBI circular.
Additionally, the information provided also mentions that the bank may transfer the contents of the locker to nominees or legal heirs, or dispose of the articles in a transparent manner if the locker is left unattended for seven years and the locker-hirer cannot be found, even if rent is being paid on a regular basis.
Regarding term deposits for bank lockers, the bank may demand a term deposit at the time of allocation, which would pay for three years’ worth of rent as well as costs associated with forcing open the locker in the event that the locker-hirer fails to pay. However, according to the State Bank of India (SBI) website, term deposits are not required from existing locker hirers or those who have satisfactory operative accounts, subject to certain criteria.
In summary, based on the information provided, the locker should not be frozen if the revised agreement is not signed, as per the RBI circular. However, it’s important to note that the specific terms and conditions may vary between different banks, and it’s advisable to directly contact the bank for any specific concerns or queries.
FAQ
Q1: Will your bank locker get frozen if you don’t sign the revised agreement by December 31?
A1: No, as per the RBI circular dated January 23, 2023, if operations in lockers have been frozen for non-execution of agreement by January 1, 2023, the same should be unfrozen with immediate effect.
Q2: How many locker holders have signed revised agreements?
A2: According to a Times of India news report, while the majority of customers have completed the formality, 10-20% of customers still need to do so. Some banks have introduced digital locker agreements, but there have been issues with the availability of the online facility.
Q3: Will locker be frozen if revised agreement is not signed?
A3: The earlier deadline to sign revised locker agreement was December 31, 2022. However, as per the RBI circular dated January 23, 2023, if operations in lockers have been frozen for non-execution of agreement by January 1, 2023, the same should be unfrozen with immediate effect.
Q4: What happens to an inoperative locker?
A4: The bank may transfer the contents of the locker to their nominees or legal heirs, or dispose of the articles in a transparent manner, if the locker is left unattended for seven years and the locker-hirer cannot be found, even if rent is being paid on a regular basis.
Q5: Are term deposits required for bank locker allocation?
A5: At the time of allocation, the bank may demand a Term Deposit, which would pay for three years’ worth of rent as well as costs associated with forcing open the locker in the event that the Locker-hirer fails to pay. However, the SBI website states that term deposits are not required from existing Locker hirers or those who have satisfactory operative accounts, subject to certain criteria.
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