Banks get time till Dec-end to execute revised agreement with locker holders

PTI, Jan 23, 2023, 6:30 PM IST

Mumbai: The RBI on Monday extended the time till December-end for banks to enter into revised agreements with safe deposit locker holders as a large number of customers are yet to do so.

In August, 2021 the Reserve Bank of India (RBI) had asked banks to enter into revised agreements with the existing locker holders by January 1, 2023 in view of various developments in the area of banking and technology, nature of consumer grievances and also the feedback received.

”However, it has come to the notice of RBI that a large number of customers are yet to sign the revised agreement.

”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 central bank said in a statement while extending the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner by December 31, 2023.

Banks have been asked 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 also have to facilitate execution of the fresh/supplementary stamped agreements with their customers by taking measures such as arranging stamp papers, electronic execution of agreement, e-stamping, and providing a copy of the executed agreement to the customer.

The RBI also said in cases where operations in lockers have been frozen for non-execution of agreement by January 1, 2023, ”the same shall be unfrozen with immediate effect”.

The August 2021 guidelines pertain to customer due diligence, model locker agreement, locker rent, security of strong rooms, and attachment and recovery of contents in a locker and the articles by any law enforcement authority, among others.

The RBI further said there is a need for revision in the Model Agreement drafted by the Indian Banks’ Association (IBA) to fully comply with the revised instructions.

”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,” it said in a circular.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Congress takes religious route to woo voters in poll-bound K’taka

Adani crisis: Banking sector resilient and stable, says RBI

J-K terror funding case: 4 associated with Hizbul Mujahideen plead guilty of money laundering

You are my new hero: Gavaskar tells Lakshya Sen

PIL in SC seeks prosecution of short sellers for ‘artificial’ crashing of Adani Group’s stock value

Mangaluru: Jewellery shop employee dies after being stabbed

DK Shivakumar meets Actor Kiccha Sudeep; Is latter joining Congress party?

Related Articles More

Adani crisis: Banking sector resilient and stable, says RBI

Sebi notifies stronger framework for green bonds; introduces concept of blue, yellow bonds

Moody’s says stock plunge to hurt Adani’s ability to raise funds

Adani Enterprises to be dropped from Dow Jones sustainability indices

India among top three sources for active users growth on Facebook: Meta


Success Story of Mr bean

| Malpe fish market

Mahindra on Bengaluru waiter balancing 16 plates

Another dead body found at Charmadi Ghat

voting boycott continued in mudigere assembly

Latest Additions

Spending time with children more valuable than money: Sudha Murthy at MBIFL

Congress takes religious route to woo voters in poll-bound K’taka

Kasaragod: One arrested with 1.3 kg of smuggled gold at railway station

Five killed, three injured in crash on Lucknow-Agra Expressway

Saradha case: ED attaches assets of ‘beneficiaries’, including P Chidambaram’s wife, ex-CPM MLA

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.