Why some customers complained about bank locker renewal rules

Renewing customer lockers in line with the new rules is a major issue that banks must address.

Some customers of State Bank of India, the country’s largest lender, ICICI Bank, and Union Bank complained on social media about the process of locker renewals.

This was after the Reserve Bank of India (RBI) introduced new locker rules in August 2021 that became effective on January 1, 2023.

What are the new locker rules?

The revised rules on bank lockers were applicable to existing customers from January 2023 and were already in force for new customers from January 2022.

The RBI made it mandatory for banks to install CCTVs to monitor locker rooms and to store the footage for 180 days. Banks were told to send SMS and emails every time customers accessed their lockers as a step against fraud.

The central bank also asked banks to sign board-approved agreements with customers for safe deposit lockers and allowed them to adopt a model agreement framed by the Indian Banks’ Association.

What were the complaints?

Some customers complained about the difficulties they faced as banks implemented locker renewals, including signing the new agreements and the lack of timely information about the new rules.

Rajeev Sood, a senior citizen who is a customer with ICICI Bank, said in a post on Twitter that he was called to the branch and travelled 20 km only to be told to get stamp paper for the locker and come back.

Nitin Gupta, a customer with Union Bank, tweeted: “The bank is asking customers to get the new locker agreement from the market but it is the bank's responsibility to get the agreement drafted and signed by the customer.”

@UnionBankTweets Please Note Union Bank Kailash Colony New Delhi Branch is asking Customers to get the New Locker agreement from the market - Its bank's Responsibility to get the Agreement drafted and signed by the Customer - Please look into the same @RBI @PMOIndia @ndtv

— Nitin Gupta (@nitin_guptak) December 15, 2022

Divyadeep Goel, a customer with SBI, said they were told about the new rules on January 6.

“The bank informed me of nothing and they are not taking calls. When I reached the branch, they told me to get stamp paper,” Goel said.

Did the banks respond to such complaints?

Aashish Kumar Das, a customer with SBI, was confused over the amount of stamp paper required for renewing his locker.

Responding to this, SBI said: “Please note that stamp charges on locker agreements are to be paid as per the guidelines of the concerned state govt. The value of stamp paper required for locker agreement is as per the state stamp act.”

Union Bank of India said: "Union Bank of India has adhered to the new locker rules levied by RBI. All the branches and the bank’s website has made the new agreement available for its customers to ensure ease in the transition."

Queries sent by Moneycontrol to ICICI Bank seeking their responses remained unanswered till the time of publishing the article, which will be updated when their replies are received.

What do experts say?

Experts told Moneycontrol that renewing customer lockers in line with the new rules is a major issue that banks must address.

Ashwin Parikh, an analyst with EY, said banks belatedly informed some customers about the new rules.

“There were cases where banks had only informed their customers about the new rules one to two weeks before the deadline. Due to this, some customers, like senior citizens and non-resident Indians were either late or had to go through the process in length,” Parikh said.

CH Venkatachelam, general secretary of the All India Bank Employees Association, said the renewal process must be more conducive.

“Banks sometimes increase the rent of the locker without informing the customer. There is a need to streamline operations between banks and customers so that the confusion over renewing lockers is worked on,” Venkatachelam explained.

Venkatachelam said the RBI must step in and ensure better communication and resolution mechanisms between banks and customers.

“The RBI must put out some advisory and guidelines for better communication for locker services between customers and banks,” Venkatachelam said.