Thinking of storing your valuables in a bank locker? It’s a smart choice if you want added safety for items like jewellery, documents, or heirlooms. But before you sign up, it’s essential to understand how bank lockers work, what charges apply, whether your belongings are insured, and the rules you’ll need to follow.
Here's a detailed look at what you should know before renting a bank locker in India:
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How bank lockers function - Bank lockers are safe deposit boxes individuals can rent at banks to store valuable items such as money, papers, and jewellery. They are available in various sizes and are stored safely in the bank's vaults and can only be accessed by the renter or individuals authorized. Most banks need an individual to have a savings or current account with them in order to rent a locker, and the locker is often linked to the account.
Locker rental and security deposit - A rented locker has an annual fee that is based on the size of the locker and location of the branch. For instance, a small one in a rural branch would cost ₹1,000 per annum while a big one at a metro would cost over ₹10,000 per year. Apart from that, a fixed deposit as a guarantee against rent default and/or damages is normally required. The fixed deposit is based on the size of the locker.
What is and isn’t insured - Contrary to popular belief, banks do not automatically insure the contents of your locker. According to RBI guidelines, banks are responsible for the security of the locker area but are not liable for any loss of items unless there is negligence. Some banks now offer optional insurance products in partnership with third-party insurers, so it’s wise to explore these if you’re storing high-value items like gold or antiques.
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Access and operations rules - You have access to your bank locker during normal working hours, and banks keep a log of every visit in a journal or by biometric authentication. Banks allow most to appoint joint owners with a nominee, and in case of joint holding, both can use it jointly or individually as per the mandate. Upon death of the locker holder, the items are transferred to the nominee after submitting the documents necessary.
RBI regulations and recent changes - The Reserve Bank of India also changed locker guidelines in 2021 to make it more transparent and accountable. Banks now must execute a new locker agreement with clients in a standard RBI-drafted format. Locker holders must also visit the locker at least once every five years, or else banks can treat it as inactive and open the locker after giving notice. New norms also restrict liability in the case of loss due to negligence by the bank.
Is a bank locker in your best interest? - Having a bank locker is worthwhile if you've got items of value that you do not wish to have at home. But weigh against the regular fees, limited access, and the need for additional cover. It's a rational solution for storage that lasts, but for short-term needs or regularly used items, a home safe could be more convenient. Ensure you inspect the agreement very carefully and ascertain your true requirement before signing for a locker.
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