India doesn’t have enough bank lockers to cater to the rising demand: Aurm Report

Aurm estimates that by 2030, the gap between the demand for lockers and the availability of lockers will be around 5.4 crore, according to the report.

India has a significant gap in the availability of bank lockers and faces a dire need for accessible and convenient locker services, according to a report by Aurm, a startup that is providing locker services in the country.

Aurm estimates that by 2030, there will be six crore affluent Indians needing safe deposit storage lockers in Indian cities. However, at present, there are only 60 lakh bank lockers available across the country. Thus, the gap between the demand for lockers and the availability of lockers will be around 5.4 crore, according to the report that was commissioned after speaking to several banking officials and data gathered from various reports published by the Reserve Bank of India (RBI).

As per the Aurm report, the demand-supply gap is set to widen in high-density urban clusters, where banks face a dearth of space and high rents.

Indian households are estimated to hold around 22,000-25,000 tonnes of the yellow metal. In stark contrast, there are only 60 lakh lockers in the country from public and private banks.

“The gap between demand and supply of lockers is colossal. This gap is expected to grow further as the purchasing power of Indians grows, as has been the trend. There is an urgent need for accessible, secure, and convenient lockers in the country,” said Ganesh Balakrishnan, co-founder, of Aurm.

Indian households allocate 10-15 percent of their assets to it either in the form of jewellery or as an investment. However, few have access to bank lockers, leaving them susceptible to theft, burglaries, and fraud.

While access to bank lockers was a prime concern in India, security breaches in lockers were another challenge that Indians had to face. According to the Union Ministry for Finance, between April 2014 and March 2017, a staggering Rs 180 crore was lost in a total of 2,632 incidents of robbery, theft, and burglary across 51 banks.

“To counter these challenges, Aurm proposes a multi-stakeholder approach to overhauling the system,” said Balakrishnan. One key recommendation is for governing bodies of banks such as the RBI to set up a regulatory framework ensuring transparency and clearly defining guidelines for liability. Banks, on the other hand, must make technological upgrades to their lockers to enhance security and customer experience, he added.

Also read | Revised bank locker rules: 5 things you must bear in mind

Incidentally, the demand and supply gap gives private players (startups) a unique opportunity to capture the market with state-of-the-art lockers. By providing a fully automated, secure, and user-friendly locker system that is available round the clock, Aurm is addressing the growing gap in demand and supply for lockers.