Who is to be pulled up? Should the bank compensate for the loss? What are the locker rules of banks? What precautions should be taken? Here are some tips for better locker management.

Most banks offer locker facility. A safe deposit locker (SDL) is different from the safe custody service provided by banks. Lockers can be hired on payment of an annual rent. According to a circular issued by the Reserve Bank of India, branches should maintain a wait list for allotment of lockers and ensure transparency.

The locker account type depends on the size of the locker — small, medium or big, the number of persons who intend to operate it and the mode of operation. Select the option carefully at the time of opening the locker account.

The locker key is everything — your personal identification number (PIN) as well as your right to open your locker and access the things in it. Some banks also provide a password that you need to mention each time you operate the locker, specially if your signature does not match the specimen available with the bank. Every locker has a master key that is held by the bank. A duplicate of this key is available only with the vault manufacturer. A second key, for which there is no duplicate, is given to the locker owner.

Every time a locker changes hands, it is the duty of the authorities to inform the manufacturer and replace the lock. Information on locker contents — a privilege enjoyed only by the locker holder — becomes crucial to prove the existence of missing articles. The value of the contents of a locker are always, and only, the holder’s privilege and so there is no insurance cover.

While returning the key and surrendering the locker, you have a right to ensure that the custodian has recorded the surrender with the date and time in the register. A simple request application of surrender is sufficient; you may get a copy of the application endorsed by the bank. As a matter of caution, you may specify in your application the date and time of surrender of the locker and a request to issue you a “No Due” certificate for the locker rent.

In case you feel the bank is deficient in providing services with regard to its locker facilities, you can approach the concerned authority at the bank, his / her seniors in rank, the banking ombudsman or the consumer forum for redress of complaints.

In the case of Madan Lal Chawla & Others vs Central Bank of India, Madan Lal informed the bank that he had forgotten to lock his locker. The bank did not act promptly and the gold jewellery kept in the locker was found missing. The Punjab State Consumer Disputes Redressal Commission (PSCDRC) upheld the negligence of the bank but as there was no evidence of the amount of gold kept in the locker, the commission asked Madan Lal to seek redressal through a civil suit.

In 1993, a private safe deposit vault in Surat was broken open and the jewellery in it stolen. The court ruled in favour of Manjulaben Lalwala, the locker holder. Due to “deficiency in service”, the company was made “liable to make good the loss suffered by the complainant”.

Mahender Singh Siwach obtained a locker from Punjab and Sind Bank (PSB). Someone had earlier held the locker and surrendered the same. However, the surrender was not recorded in the bank register. The person had a duplicate key made. Using the key, and in connivance with bank officials, he took away the contents that belonged to Siwach. The bank then replaced the lock. The complaint was allowed by the National Consumer Disputes Redressal Forum, PSB was held to be deficient in services and ordered to pay a claim of Rs 17.5 lakh to Siwach.

When Kanak Choudhary found that termites in her locker with the Union Bank of India had caused a heavy loss to her, she complained to the manager. The bank was non-committal. The district forum she approached held the bank responsible for “deficiency in service” and awarded compensation. The bank petitioned the state and then the national commission. The national commission noted that the manager had not bothered to inspect the locker. The commission dismissed the petition with added costs to be paid by the bank to Choudhary.

Legal experts say that the locker provider may not be liable to make good the losses to the locker holder in cases pertaining to natural calamities except in cases where the lockers are kept below the ground level and where the vaults are not waterproof.

It is advisable to have a copy of the locker agreement, be cautious while operating the locker specially while leaving the premises, and if the bank permits, install a personal lock on your locker. In case of any problem, contact the branch manager or his / her superiors and then the banking ombudsman. The consumer forums are always there to help you with redress of complaints.

10 THINGS YOU SHOULD KNOW

■ A locker may be hired by any person

■ Minors are not allowed to open lockers

■ Lockers are rented out for a minimum period of one year

■ The rent for the locker is payable in advance

■ A special fixed deposit can be lodged with the branch for payment of locker rent from the interest accrued on the deposit

■ Overdue rent will attract penalties as decided by the bank from time to time

■ The bank has a right to break open the locker if the holder does not pay the locker rent.
He / she will also have to bear the charges of breaking open the locker

■ While opening a new locker, make sure that the bank provides a copy of the locker
agreement you have entered into with the banks

■ The nomination or survivorship clause should be reviewed and the option availed within one year

■ Before hiring a locker, take time to read the Know Your Customers (KYC) Standard and Anti Money Laundering (AML) measures that form a part of the guidelines given to the bank from time to time.

 

For more information write to cerc@cercindia.org