Check new dates, agreement period and more; Banks locker revised agreement deadline extended
In light of a variety of developments in the banking and technology fields, the nature of consumer complaints, and the feedback that had been received, the Reserve Bank of India (RBI) had issued a request to banks in August 2021 to modify their agreements with existing locker holders by January 1, 2023.
Mumbai: Due to the large number of customers who have yet to sign revised agreements with banks, the RBI extended the deadline until the end of December on Monday.
In light of a variety of developments in the banking and technology fields, the nature of consumer complaints, and the feedback that had been received, the Reserve Bank of India (RBI) had issued a request to banks in August 2021 to modify their agreements with existing locker holders by January 1, 2023.
However, the Reserve Bank of India (RBI) has learned that a significant number of customers have yet to sign the revised agreement.
In a statement, the central bank extended the deadline for banks to complete the process of renewing agreements for existing safe deposit lockers in a phased manner by December 31, 2023. "In many cases, the banks are yet to inform the customers about the need to do so before the stipulated date (January 1, 2023)."
The revised requirements must be communicated to all customers by April 30, 2023, and banks must ensure that at least 50% and 75% of their current customers have signed the revised agreements by June 30 and September 30, 2023, respectively.
The arrangement of stamp papers, electronic execution of the agreement, or e-stamping, as well as the provision of a copy of the executed agreement to the customer are all measures that banks must take to facilitate the execution of new or additional stamped agreements with their customers.
"The same shall be unfrozen with immediate effect" in cases in which operations in lockers have been frozen for non-execution of agreement by January 1, 2023, according to the RBI.
Customer due diligence, the model locker agreement, locker rent, the security of strong rooms, the attachment and recovery of locker contents by any law enforcement agency, and other topics are covered in the August 2021 guidelines.
In addition, the RBI stated that the Indian Banks' Association (IBA)'s Model Agreement must be revised to fully comply with the revised instructions.
It was stated in a circular that "IBA is being advised separately to review and revise the Model Agreement to ensure that it complies with the requirements of circular dated August 18, 2021 and circulate a revised version to all banks by February 28, 2023."
