RBI set proposed rules for the hiring of bank vaults

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The Reserve Bank of India said it had evaluated the banks’ “Bond Locker/Safe Storage Article Facility” after considering various advancements in banking and innovation, the nature of consumer issues, and inputs from financial institutions and the Indian Banks’ Association (IBA).

The review considers the principles laid out by the Supreme Court in the case of Amitabha Dasgupta vs Union Bank of India. In addition to new and existing safe deposit lockers, the revised guidelines will also apply to the bank’s sustainable hospitality of assets facility as well.

A branch-by-branch list of vacant lockers, as well as a wait-list in Core Banking System (CBS) or any other computerized system complying with Cyber Security Policy, must be maintained by banks to ensure transparency in locker issuance, according to the Reserve Bank of India (RBI).

All submissions for locker allocation must be acknowledged by the banks, who will then offer a wait list number to consumers in case there are no lockers left.

As a result, the banks will be required to implement a Board-approved policy specifying their responsibilities for any loss or damage to the contents of the lockers as a result of negligence on their part .

For example,” Quakes, flooding, lightning and thunderstorms, as well as acts due to the sole fault or negligence of the client, are exempt from the bank’s liability,” it stated.

As a result, banks should take the necessary precautions to ensure that their locker systems are secure and safe. It is also the bank’s responsibility to ensure the safety and security of the vaults.

‘Because banks cannot claim that they have no responsibility towards their clients for loss or damage to the contents of a safe deposit box,’ the banks’ obligation should be for a sum equivalent to 100 times the prevailing yearly rent of the safe deposit box.

After three years of non-payment, banks will have the right to break open any locked locker following proper procedure.

According to one of the country’s largest state-owned banks, a small safe deposit box in urban areas costs Rs 2,000 per year, while larger ones cost Rs 4,000. A spacious locker costs Rs 8,000 a year. Additionally, the purchaser must pay the appropriate GST tax on top of everything else.

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