5 Unknown Facts about Bank Lockers

bank locker

Bank locker is just like your saving bank account. In saving bank account we place money while in locker we can keep our valuable item such as jewelry, property paper and important document such as will etc. Item which we feel should not be kept at home we place it in bank lockers.

Today we will discuss about 5 often ignored unknown facts about bank lockers.

5 Unknown Facts about Bank Lockers:-

(1)  I need to open Fixed Deposit or need to purchase Insurance policy to open Locker?

Many of us think that in order to open locker we need to take fixed deposit or need to purchase Insurance policy from bank. As per RBI guideline linking the lockers facility with placement of fixed or any other deposit beyond rent is restrictive practice and should not be allowed.

If any bank refuse to allocate locker or insist for taking fixed deposit of Insurance policy you can show them RBI Guideline for allocation of locker. Or alternatively you can tell them that you will file RTI to get actual information about availability of locker and policy of allocation.

(2)  I need to open saving bank account for getting Locker?

No it is not mandatory that you must hold or need to open saving bank account for getting locker. All you need is you need to assure bank that you are capable of paying rent for locker.

(3)  Bank Lockers are totally Safe & Secure?

Third thing which you may be news to many, and a shocker, but in truth. Belonging kept in Bank locker is not totally safe and secure.

RBI rule says that banks are, in no way, responsible or liable for the contents kept in the locker, even in the case of theft, burglary or unforeseen events which is beyond the control of banks.

However RBI mandates bank to have best security arrangement for lockers to safeguard customers’ interests.

(4)  How much compensation I will get in case something get missed from my locker?

As stated earlier banks are not responsible or liable for the content kept in locker. Even in case of natural disaster like earth quack, flood or terrorist attack where you locker contents are lost or destroyed bank is not liable to compensate anything as they have no knowledge of what is placed inside locker.

You can purchase some policies available in market to insure your jewelry and other belonging stores in lockers.

(5)  Bank cannot operate locker without your permission?

Bank Locker should be operated by you time to time at least once in year, this frequency is decided based on your RISK profile (KYC). If you fails to operate your locker in time bank will send you reminder asking for reasons/explanation. If you still don’t take actions bank has all rights to break your locker although you are paying rent regularly.

Bank Locker

Do share your views on above.

Article by Raviraj

Raviraj is the man behind moneyexcel.com. He is graduate in finance, engaged in blogging since 6 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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