Worried about valuables in safety lockers? Here's what RBI norms say and what you should do

Dos and Don'ts

Most public and private sector banks mention in their agreement that banks are not responsible for any loss or damage to the contents of a locker, thereby absolving themselves of all liabilities relating to any loss of valuables or content inside the safety deposit lockers.

Banks such as ICICI Bank and HDFC Bank in their locker agreement form mention that, “While the Bank will exercise all such normal precautions as it may in its absolute discretion deem fit, does not accept liability or responsibility of any loss or damage whatever sustained to items deposited in the Locker. Accordingly the Hirer are advised in his/her own interest to insure any items of value deposited in the Locker with the Bank.”

In an RTI query as per a FirstPost report, the Reserve Bank of India (RBI) has said “banks have no liability for loss of valuables in lockers.” This means that you should not expect any compensation for theft or burglary of valuables in safe deposit boxes of banks as the locker hiring agreement absolves them of all liability.

AC Mahajan, Chairman, Banking Codes and Standards Board of India (BCSBI) said, “The important aspects to be considered are the terms and conditions regarding the locker hiring process. It is usually a 3-page document which most people fail to read. Also, try to take insurance of most of the valuables you plan to keep inside the locker.”

According to another expert, customers must make a list of all the things you are planning to keep or have kept in your locker. "This record will help calculate the value of the contents. If the contents are missing, the record will help claim compensation after filing an FIR (first information report) with the police. Always open your locker after the bank employee who accompanies you to the vault leaves the place. Also, ensure the locker is properly locked before you leave the vault."

Safety standards

The lockers or vaults provided are of different sizes and we can choose the size based on our requirement.

As per RBI mandates, banks need to have well-equipped alarm systems, iron-gated rooms, a safety guard and electronic surveillance via CCTV in and around the place.

All banks have to adhere to these basic safeguards and also have walls, corridors and safety locks of high quality RBI-mandated standards.

In a Rajya Sabha reply, then Minister of State for Finance Santosh Kumar Gangwar said: "RBI has further informed that banks report all instances of theft/burglaries/dacoity/robberies to RBI...including theft from bank lockers and it does not maintain data on robberies in the bank lockers exclusively."

He also said RBI has informed there is no specific circular asking banks to compensate customers for theft of articles from bank lockers.

"Nevertheless banks have been advised by RBI that it would be the responsibility of the banks to ensure that the lockers remain safe and there is no negligence in the matter of safeguarding the lockers that could render the banks concerned liable to claims by locker holders," he added.

RBI regulations

The banking regulator RBI had come out with guidelines in 2007 on “Safe Deposit Lockers/Articles in Safe Custody”.

“Banks should exercise due care and necessary precaution for the protection of the lockers provided to the customer. Banks should review the systems in force for operation of safe deposit vaults / locker at their branches on an on-going basis and take necessary steps. The security procedures should be well-documented and the concerned staff should be properly trained in the procedure. The internal auditors should ensure that the procedures are strictly adhered to,” the central bank stated in the guidelines.

It also points out banks should be aware of the risks involved in renting safe deposit lockers.

Read the entire guidelines here: Safe Deposit Lockers/Articles in Safe Custody notification by RBI

The country’s largest bank, State Bank of India’s Chief Operating Officer Neeraj Vyas, said, “We, at SBI, follow all RBI prescribed safety guidelines. We have strong rooms where even a tunnel cannot be built. Our walls and floorings are of RCC quality and the safes also have prescriptions. The locker manufacturers also follow the security standards slated specifically for banks. Our entrances are monitored by CCTV. We also have a security guard at the entrance of the branches depending on Security classification prescribed internally."