RBI extends deadline for revised bank locker agreements

RBI, vide its circular dated August 18, 2021, had issued revised instructions with respect to Safe Deposit Locker/Safe Custody Article Facility that required banks to enter into revised agreements with the existing locker holders by 1 January 2023.

A large number of customers are yet to sign the revised agreement and in several cases, banks are yet to inform the customers about the need to do so. In uch circumstances, RBI has decided to extend the deadline for another 12 months.

“It has been decided to extend the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner by December 31, 2023, with intermediate milestones of 50 per cent by June 30, 2023, and 75 per cent by September 30, 2023,” the RBI said in a release.

RBI has asked banks to make necessary arrangements to facilitate the execution of the revised agreements by ensuring the availability of stamp papers. Banks have also been directed to unfreeze lockers that may have been frozen for non-execution of the agreements. RBI also asked Indian Banks' Association (IBA) to review and revise the model agreement for the renewal of bank locker agreements.

"...it has been decided to extend the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner by 31 December 2023, with intermediate milestones of 50% by 30 June 2023, and 75% by 30 September 2023. Further, banks have been advised to make necessary arrangements to facilitate execution of the revised agreements by ensuring the availability of stamp papers," RBI said in a circular.   

"Further, in cases where operations in lockers have been frozen for non-execution of agreement by 1 January 2023, the same shall be unfrozen with immediate effect. Necessary instructions in this regard have been issued to the banks," it added.