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CHAPTER X
SAFE DEPOSIT LOCKERS

A locker can be rented out by a person either in his sole name or in the joint name of himself
and others. In the case of sole lease, the lessee and in the case of joint lease either of them
shall have access to the locker, unless instructions to the contrary are given in writing. The
mode of operation viz. joint, either or survivor etc. should be specifically shown in the
application form under Special Instructions. Apart from individuals, the locker may be
hired in the name of partnership firms, limited companies, municipal/public corporations,
legal guardians of minors, fiduciaries such as executors etc.
If the locker is hired in the name of partnership firm, partnership letter and clear instructions
regarding operation and surrender of locker signed by all the partners must be obtained.
If the locker is hired in the name of a Joint Stock Company, resolution passed by its Board of
Directors authorising the hiring of the locker and specifying the names of officials
empowered to operate and surrender the locker, must be obtained.
Subsequent additions of a new name to the Memorandum of Hiring should not be permitted.
Extension of Safe Deposit Locker / Safe Custody Article Facility
Reserve Bank has issued the following guidelines in respect of lockers
Allotment of Lockers
Linking of Allotment of Lockers to placement of Fixed Deposits
Linking the lockers facility with placement of fixed or any other deposit beyond what is
specifically permitted is a restrictive practice and banks are advised to refrain from such
restrictive practices.
Fixed Deposit as Security for Lockers
Banks may face situations where the locker-hirer neither operates the locker nor pays rent. To
ensure prompt payment of locker rent, banks may at the time of allotment, obtain a Fixed
Deposit which would cover 3 years rent and the charges for breaking open the locker in case
of an eventuality.
Wait List of Lockers
Branches should maintain a wait list for the purpose of allotment of lockers and ensure
transparency in allotment of lockers. All applications received for allotment of locker should
be acknowledged and given a wait list number.

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Providing a copy of the agreement
Banks should give a copy of the agreement regarding operation of the locker to the lockerhirer at the time of allotment of the locker.
Security aspects relating to Safe Deposit Lockers
Operations of Safe Deposit Vaults/Lockers
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.
Customer due diligence for allotment of lockers /Measures relating to lockers which
have remained un-operated
Banks should be aware of the risks involved in renting safe deposit lockers. In this
connection, banks should take following measures:
(i) Banks should carry out customer due diligence for both new and existing customers at
least to the levels prescribed for customers classified as medium risk. If the customer is
classified in a higher risk category, customer due diligence as per KYC norms applicable
to such higher risk category should be carried out.
(ii) Where the lockers have remained un-operated for more than three years for medium risk
category or one year for a higher risk category, banks should immediately contact the
locker-hirer and advise him to either operate the locker or surrender it. This exercise
should be carried out even if the locker hirer is paying the rent regularly.
Further, banks should ask the locker hirer to give in writing, the reasons why he / she did not
operate the locker. In case the locker-hirer has some genuine reasons as in the case of NRIs or
persons who are out of town due to a transferable job etc., banks may allow the locker hirer to
continue with the locker. In case the locker-hirer does not respond nor operate the locker,
banks should consider opening the lockers after giving due notice to him.
In this context, banks should incorporate a clause in the locker agreement that in case the
locker remains un-operated for more than one year, the bank would have the right to cancel
the allotment of the locker and open the locker, even if the rent is paid regularly.
Procedure for break opening should made keeping in mind the legal requirements.
Embossing identification code
Banks should ensure that identification Code of the bank / branch is embossed on all the
locker keys with a view to facilitate Authorities in identifying the ownership of the locker
keys.