RBI extends time for bank locker renewal agreements

Reserve Bank of India (RBI ) on Monday extended the time for banks to renew their customer agreements for locker facilities. The banking regulator of India vide its circular dated August 18, 2021, had issued revised instructions with respect to the Safe Deposit Locker/Safe Custody Article Facility due to compliance delays.
The previous deadline of December 31, 2022, was communicated through a circular on August 18, 2021, that inter alia required banks to enter into revised agreements with the existing locker holders by January 1, 2023. The central bank noted that many customers have yet to sign the revised agreement, and in many cases, banks have yet to inform them about the need to do so before the January 1 deadline.
Accordingly, the regulator decided to extend 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, with intermediate milestones of 50 percent by June 30, 2023, and 75 percent by September 30, 2023. Further, banks have been advised to make necessary arrangements to facilitate the execution of the revised agreements by ensuring the availability of stamp papers, etc. ‘Further, in cases where operations in lockers have been frozen for non-execution of the agreement by January 1, 2023, the same shall be unfrozen with immediate effect’, it said.