Reserve Bank of India vide its Circular dated 23rd January, 2023 referred to the RBI circular DOR.LEG.REC/40/09.07.005/2021-22 dated August 18, 2021 wherein banks were required to renew their locker agreements with existing locker customers by January 01, 2023.
In the given Circular, it has been decided to extend the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner.
| Why Extension? The Banks were required to renew their locker agreements with existing locker customers by January 01, 2023.However, it has come to the notice of the Reserve Bank that large number of customers are yet to execute the revised agreement and are facing difficulties in doing the same. In many cases, the banks are yet to inform the customers about the need for renewal of agreements before January 01, 2023.Further, there is a need for revision in the Model Agreement drafted by the Indian Banks’ Association (IBA) to fully comply with the revised instruction. |
Banks are advised to notify all their customers of the revised requirements by April 30, 2023 and ensure that at least 50 per cent and 75 per cent of their existing customers have executed the revised agreements by June 30 and September 30, 2023 respectively. Banks shall report the status of compliance with these instructions on the DAKSH supervisory portal of the Reserve Bank on a monthly basis.
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.
Banks are advised to facilitate execution of the fresh/supplementary stamped agreements with their customers by taking measures such as arranging stamp papers, franking, electronic execution of agreement, e-stamping, etc. and provide a copy of the executed agreement to the customer. Where operations in lockers have been frozen for non-execution of agreement by January 01, 2023, the same should be unfrozen with immediate effect.
This Circular is applicable to all Commercial Banks (including RRBs, Small Finance Banks, Payment Banks and Local Area Banks), Co-operative Banks and shall come into force with immediate effect.
About the Author
