MUMBAI: The Reserve Bank of India (RBI) on Tuesday allowed banks to obtain from the clients who operate their safe deposit lockers with the bank, a fixed deposit, which would cover three years rent and the charges for breaking open the locker in the case of an eventuality, at the time of allotment. However, banks should not insist on such fixed deposit from the existing locker-hirers.

The Committee on Procedures and Performance Audit of Public Services (CPPAPS) of the RBI observed that linking the lockers facility with placement of fixed or any other deposit beyond what is specifically permitted is a restrictive practice and should be prohibited forthwith. "We concur with the committee's observations and advise banks to refrain from such restrictive practices,'' the RBI stated in a notification to banks. The RBI insisted on branches maintaining a wait list for the purpose of allotment of lockers and ensuring transparency in receipt of application and allotment of lockers. Where the lockers have remained unoperated 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 or 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 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.

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