The Reserve Bank of India on Wednesday came out with revised guidelines for the hiring of lockers under which the liability of banks will be limited to 100 times its annual rent in the case of fire, theft, building collapse or frauds by bank employees.

According to the revised guidelines, which shall come into effect from January 1, 2022, banks will be required to incorporate a clause in the locker agreement prohibiting the hirer from keeping anything illegal or hazardous in lockers.

The revised instructions will be applicable to both new and existing safe deposit lockers and the safe custody of articles facility with the banks.

Banks need to maintain a branch-wise list of vacant lockers as well as a wait-list to ensure transparency in the allotment of lockers.

Banks shall provide a wait list number to the customers, if the lockers are not available for allotment.

The RBI has also detailed the compensation policy and liability of banks in the revised instructions.

“The bank shall not be liable for any damage and/or loss of contents of locker arising from natural calamities or Acts of God like earthquake, floods, lightning and thunderstorm or any act that is attributable to the sole fault or negligence of the customer,” it said.

“As banks cannot claim that they bear no liability towards their customers for loss of contents of the locker, in instances where loss of contents of locker are due to incidents (like fire, theft/ burglary/ robbery, dacoity) or attributable to fraud committed by its employee(s), the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker,” it said.

On locker rent, the RBI said that to ensure prompt payment of locker rent, banks are allowed to obtain a Term Deposit, at the time of allotment, which would cover three years’ rent and the charges for breaking open the locker in case of such an eventuality.