Bank Locker in India

Strong storage container maintained in the vault area of a bank and rented to
bank customers for safekeeping of valuables. These boxes are said to be impervious
to fire, flood,
and theft,
and
their contents are
covered
by
the bank's insurer.
Access to individual boxes is secured through two different keys: one kept by the customer, the
other by the bank.

Having certain valuables like gold, diamonds and important documents at home can make our
daily lives insecure, as guarding these valuables will command primary importance at home. A
well shielded location, where these valuables can be stored, will definitely relieve us to some
extent.
Safe deposit vault systems:Bank lockers are relatively safe for a person to store his/her valuables for a period of time. The
lockers are built to be safe and well equipped with alarms and other alerting devices. These
lockers are available with many banks in India and each bank has specific branches where they
have these lockers. The locker is just like a cupboard that is made of metal and has a door that
can be locked by various means (key, coded number etc).
Bank locker rules:Both private and public sector banks provide the facility of lockers today. All these banks go by
the guidelines of Reserve Bank of India. Some of these guidelines are listed below:

Public sector banks may collect a sum as deposit from the customer for hiring locker. It is
not mandatory to do so. But the interest on this deposit amount can be taken by bank as rent for
using the locker facility.

The KYC process is given importance when a customer wishes to use the locker facility.
This is done as a part of safety since there are incidents where explosives were stored in bank
lockers.

The lockers are to be opened by the customer at least once in 6 months. If the locker is
not opened for more than a year then there will be a notice issued to the customer for doing the
same. If there is no response from the customer then, the bank has the rights to break open the
locker in the presence of police in a legal manner. The same may be applicable in areas where the
rent is not paid by the customer.
Safe deposit vaults features:The locker facility is also called as safe custody and to hire this locker with a bank in India, the
person has to be over 18 years of age. Some banks may also require that the person should hold
an account with the bank to avail this facility.
The lockers are available in different sizes and based on the needs, a customer can choose the
size of his locker. The customer may also have to deposit some amount as security in the
beginning. This may include the rent for locker for a period (say 3 years) and also an amount for
emergencies when the bank has to break open the locker (say, if the customer has lost the key).

Nomination and/or joint ownership of a locker has become a mandatory priority while hiring a
locker. The bank specifies the conditions where the customer who is hiring the locker will be
given an option to mention a nominee for his locker. If there are joint holders then all the joint
holders have to particularly mention the kind of ownership agreement they are getting into (like
either or survivor, former or survivor etc).
The customer will get an acknowledgement if there is any security deposit made in the beginning
when the locker is hired. The bank also provides a document where the bank states the details of
the locker allotted to customers. This document is called the memorandum of letting and this is
provided after the locker is hired by the customer.
Developments and advantages of bank locker:In the presence of private banks in the market, the competition in upgrading the technology and
service in locker facility has also increased. Recently one of the private banks came up with an
idea where the customer could use the locker at any time of the day and any day of a week. So a
customer need not hold on to his valuable jewels and wait for the business hours of a bank to
place it back in his locker.
The rent towards locker facility is very less when compared to the value of its content. The rent
is to be paid on annual basis and if we consider the price hike in gold or silver, the rent that is
provided seems to be reasonable.
A safe deposit box, sometimes known as a safety deposit box,[1] is an individually secured
container, usually held within a larger safeor bank vault. Safe deposit boxes are generally located
in banks, post offices or other institutions. Safe deposit boxes are used to store valuable
possessions, such as gemstones, precious metals, currency, marketable securities, important
documents such as wills, propertydeeds, and birth certificates, or computer data storage that need
protection from theft, fire, flood, tampering, or other perils. In the United States, renting out a
safe deposit box in a bank does not mean that the property is automatically insured.[2] An
individual should still purchase insurance for the safe deposit box in order to cover theft
and natural disasters.
In the typical arrangement, a renter pays the bank a fee for the use of the box, which can be
opened only with presentation of an assigned key, the bank's own guard key, the
proper signature, and sometimes a code of some sort.[3] Some banks additionally
use biometric dual-control security to complement the conventional security procedures. [4] The
security measures utilized by many institutions often make safe deposit boxes a poor repository
for wills, powers of attorney and other estate planning documents if the owner has not authorized
additional signatories on the account.[5]

5 things to keep in mind while renting a locker

Bank safe deposit lockers are a good option for safeguarding your valuables and
documents.
Q1) How does it work?

Just as you trust a bank with your money in the savings accounts or fixed deposits, safe
deposit lockers offer the best option to safeguard your valuables, including jewellery,
cash and important documents. Banks must allot lockers on a first come, first serve basis.
If none are available, the bank branch needs to maintain a waiting list and provide the
applicant with a waitlist number. It must also inform the customer when it is available.
Each locker has two sets of keys, one for the customer, the other with the bank, and it can
be opened only if both the keys are used. It is better to own a locker jointly and name one
or more nominees. This ensures hassle-free transfer of contents in the event of the death
of either or both account holders. Most importantly, read the guidelines on lockers
thoroughly.
Q2) How much does it cost?
Lockers come in different sizes and the annual rent varies accordingly. The State Bank of
India charges Rs 1,019 per year for a small locker, Rs 2,547 for medium, Rs 3,056 for
large and Rs 5,093 for extra large lockers.
In private banks, the charges are steeper. Citibank charges Rs 2,500 for the smallest
locker and it goes up to Rs 40,000 for the best facility on offer. There is a one-time
registration fee as well. The SBI charges Rs 509, but it varies across banks. Banks also
charge rent overdue charges of 10-50% of the annual rent.
There are rules on the number of visits in a year as well. For example, the SBI allows 12
free visits a year and charges Rs 51 for extra visits. You must, however, visit your locker
from time to time.
Banks are also allowed to recover charges to break open a locker and a minimum service
charge of Rs 500 over and above the actual expense, if you lose your locker keys.
Q3) Is it safe?
According to the RBI, banks are, in no way, responsible or liable for the contents kept in
the locker, even in the case of theft, burglary or similar unforeseen events. However, it
still remains the safest bet as the RBI also mandates banks to have the best-in-class
security arrangements to safeguard customers' interests.
The quality of lockers is also the best in the market and undergoes rigorous safety tests
and are fire-resistant. In spite of all precautions, there have been reported break-ins or
termite attacks in banks, but the incidents are few and far between.
Q4) Do you need to have an account?
The RBI says banks cannot deny the locker facility to those who are not existing
customers. However, banks can ask for a caution deposit of up to three years of a locker's
rent, plus charges, to break open a locker in emergencies, along with the relevant service
charge.

For example, if you pay an annual rent of Rs 1,019, banks can ask you to open an FD for
Rs 4,066 (Rs 1,019 x 3 + 509 service charge + 500 breaking charges).
In reality, though, banks make it mandatory to open a savings bank account on the pretext
of getting your KYC done. The more aggressive ones force you to open a fixed deposit of
Rs 1-5 lakh, or misssell high-cost Ulips or insurance plans.
This is in violation of the RBI guidelines and you can lodge a complaint with the apex
bank.
Q5) How much compensation can you get?
Banks are not responsible for the contents of the locker. In case of natural calamities,
including an earthquake or flood, and even in the case of a terrorist attack, where your
locker contents are destroyed or lost, banks can easily wash their hands off the
compensation.
Even in case of a break-in or a termite attack, banks can argue that since they have no
knowledge of what you had stored in the locker, they cannot compensate you. However,
they can be held responsible for not providing adequate security or lack of basic
maintenance. So, you could receive some compensation if you move the court.
SAFE DEPOSIT LOCKER
For the safety of your valuables, we offer safe deposit locker facility at a large number of our
branches. There is a nominal annual rent, which depends on the size of the locker and the
centre at which the branch is located. The rent is payable in advance for the Financial Year. A
copy of the locker agreement regarding operation of the locker can be provided to the locker
hirer at the time of allotment of the locker.

It is always beneficial to avail the benefits of nomination facility/ survivorship clause

provided to locker-hirers. The major advantage of availing these facilities is that in the event
of unfortunate death of one of the joint locker-hirer, the right to the contents of the locker
does not automatically devolve on the surviving joint locker-hirer/ nominee (s), unless there
is a survivorship clause/ nomination.

The instructions/ policies/ procedures for giving access of the locker to the nominee(s) /
survivor (s)/ Legal Heir(s) of the deceased locker hirer are furnished below.

Most Important Terms & Conditions

Annual rental is payable in advance.

Rental depends on the size of the lockers and location of the

branch viz metro/urban or semi-urban/rural.

One time registration charges for all center is also levied.

KYC norms are applicable for locker hirers.

Lockers can not be allotted to minors either singly or jointly
with others.
Nomination facility is available. Bank is guided by the
provisions of Sections 45 ZC to 45 ZF of the Banking Regulation Act,
1949 and the Banking Companies (Nomination) Rules, 1985 and the
relevant provisions of Indian Contract Act and Indian Succession
Act.

Why a Bank Locker

One of the safest way to store valuables like your jewellery, important documents and other
precious items is safe deposit vaults or bank lockers. There is a risk of these valuables being
stolen from residential or office premises. Hence one opens a locker and puts in valuables.
What is a Bank Locker?
A locker is a small, usually narrow storage compartment. They are commonly found in dedicated
cabinets, very often in large numbers, in various public places such as locker rooms,
workplaces, schools,gyms. They vary in size, purpose, construction, and security.
Bank lockers are relatively safe for a person to store valuables for a period of time. Bank
Lockers are small boxes kept in a room that is guarded heavily and has solid iron doors or
concrete walls around it.To open the locker a pair of keys are needed,one key is with the
bank and the other is with the customer. Both keys have to be used together to open the locker .
Both private and public sector banks provide the facility of lockers today. All these banks go by
the guidelines of Reserve Bank of India (RBI). The locker facility is also called as safe custody.
The relationship of the bank and the locker holder is that of a lessor and lessee, or in
simple words that of an owner and a tenant. Each customer is charged an annual fee for
holding the locker with the bank. The amount depends on various factors such as size of
locker, urban or semi urban, public sector or private banks etc.
Size of the Locker
Safe Deposit Lockers are available in various sizes .Based on the needs, a customer can
choose the size of his locker.

In laymans language locker sizes are sometimes classified as Small, Medium and
Large. But Technically the lockers sizes are called by alphabets A, B. Many banks
over variation so you can have locker sizes A1, A2 etc.
The lockers sizes start with small-sized ones, often referred to as A-class whose size
in inches is generally around 4.5 X 5.875 X 20.75 .
The size increases in alphabetical order, so the L/K class are usually the largest. L
size locker size is around 15.5 X 19.9375 X 20.875.
As the size increases the rent also increases .
Given below are sizes of locker from State Bank of India and Axis Bank and some sizes from
Indian Bank Click on the image to enlarge. Indian Bank offers even more sizes such as A1, A2
till L1, which we have captured in this image

Requirements to have a locker

Both private and public sector banks provide the facility of lockers and are governed by the
guidelines of Reserve Bank of India. Some of these guidelines are listed below:
Though to avail the locker services one need not have a saving account in the
bank .But a bank asks new customers to open a savings account. This is because
opening a savings account helps complete the know your customer (KYC) norm.
Also, a savings account at the branch makes it easy, for the bank,to collect annual
charges.
Banks must allot lockers on a first come, first serve basis. If none are available, the
bank branch needs to maintain a waiting list and provide the applicant with a
waitlist number. It must also inform the customer when it is available. Please note
not all bank branches have lockers. It is a first-come-first-served service that has
always been in high demand.
Bank lockers can be rented on single as well as joint basis. If there are joint holders
then all the joint holders have to particularly mention the kind of ownership agreement
they are getting into (like either or survivor, former or survivor etc).
Nomination facility for a locker is available. In case of death of locker holder (or
joint holders) a nominee gets access to the locker by producing death certificate and
filing up claim form. Our article Bank Account,Term Deposit,Locker:Paperwork
Required For Claim discusses nomination for bank lockers , importance etc in detail.
The bank may ask customer to deposit some amount as security in the
beginning for opening a locker, called as Caution Money. This may include the
rent for locker for a period of 3 years and also an amount for emergencies when the
bank has to break open the locker for example if the customer has lost the key. It is
not mandatory to do so but most of the banks do ask. There are several
complaints how banks have and are taking advantage of the soaring demand for
lockers to force customers to invest in investment products like fixed
deposits,insurance schemes which are in violation of the Reserve Bank of India (RBI)
rules.
Bank does Risk categorization of locker hirers, mostly as per deposit account of
hirers with Bank. Risk categorise are generally High, medium, low,
While opening a locker one needs to sign an agreement document,
called Memorandum of Letting. It is an agreement between the Bank (called as
lessor),who is letting out the locker and Customer (called lessee) hiring the locker
regarding operation of the locker. This document is a registered document and
attracts stamp duty. The choice of method of paying stamp duty is largely dependent
on the state in which the stamp duty is to be paid and the amount of such stamp
duty. Various methods of paying stamp duty are e-stamping, franking and Stamp
paper.
However, even if you agree to the banks conditions, you may still not be able to find a desirable
locker. This is because getting a bank locker has become difficult, especially in the metros as
Banks dont have too many lockers. And there is no space to provide new ones. But branches in
suburbs have higher number of lockers and so do those in smaller cities . It may be worth your
while to scout around for new branches opening in your city because in an effort to lure new
customers, they may waive the security deposit. You will also be able to get a locker
immediately and wont have to endure an endless wait as is the case with the existing branches.
Leasing of locker, Surrendering the Locker
Locker is typically leased for a term usually from 1 to 3 years.

On expiry of the lease period of the locker, the hirer of locker may either get the lease
renewed for further period of one / three years or may surrender / vacate the locker.
Vacating of locker by the hirer (Customer) on or before the expiry of lease period is
called as Surrendering of Locker.
Each bank has different refund rules. What happens if you surrender the locker midterm? Will you have to forego the fee or will the bank refund you on a pro-rata basis?
So know the refund rules of your locker.
Rent of Locker
One needs to pay rent for using the locker (Just like one pays for rented house).
Locker charges not only vary across banks but also branches, depending on their
location-metro city or semi-urban area, busy commercial area etc. There is a wide
disparity in rates between public sector banks and private ones. For instance, the
rental prices for a medium-sized locker (F class) in a private bank may go up to Rs
20,000 a year, but the same can be had in a public sector bank for one-sixth the
price.
The rate also depends on the type of account you have with the bank. For instance,
HDFC Bank is willing to waive 50% of the rent if you are a classic customer, that is,
your average quarterly balance is Rs 1 lakh.
The cheapest lockers are the small-sized ones, often referred to as A-class. The size
increases in alphabetical order, so the L/K class are usually the largest and the most
expensive lockers.
To avoid costly surprises, its important to check the fine print. For instance, many
banks require a minimum account balance to be maintained, which can be an
expensive proposition if you select a bank where the limit is set at Rs 25,000-50,000
a quarter.
It is also crucial to know how your bank defines a year while calculating locker
rentals. Most banks take the date of agreement as the starting point and the
subsequent annual rent will have to be paid on that date. However, some banks have
a predefined timeline-it may be set according to the calendar year or fiscal year. It is
important to know the pattern in order to pay the rent without defaulting.
Using the locker
Custodian is an officer designated by each branch to be in charge of Safe Deposit Lockers. To
open the locker a pair of keys are needed,one key is with the bank typically with Custodian
and the other is with the customer. Both keys have to be used together to open the
locker . Some banks ,like IDBI have now started offering 247 locker access at select
branches , however this facility comes at a cost.
Lockers can be operated during the specified timing displayed at the branches. One
visits the bank during the locker opening hours with locker key.
Meets the custodian and does the necessary paper work example signing the
register. Waits if someone else is using the locker.
Along with the custodian visits the deposit vault. Custodian fits in the bank key,
customer his key and locker opens. Custodian leaves the deposit room. Customer
takes out, puts stuff in privacy. Once he is done, he comes out.
Please do check for additional charges . Some banks may charge extra if you
operate the locker more than a certain number of times, for ex SBI charges for
more than 12 times a year.
The lockers are to be opened by the customer at least once in 6 months. If the locker
is not opened for more than a year then there will be a notice issued to the customer
for doing the same. If there is no response from the customer then, the bank has the

rights to break open the locker in the presence of police in a legal manner. The same
may be applicable in areas where the rent is not paid by the customer.
Operate the locker with a cool mind and utmost patience, and before closing the locker
have a look around to ensure no valuable as been left out of the locker. Also, dont allow
anyone inside when you are operating the locker. In fact, going to the locker with close family
members like son, daughter, husband or wife is usually good, provided the locker is hired in
their name too.
Do keep a written record of your contents in the locker. In case of a theft, at least you will
know what was stolen. If you are keeping documents in lockers, it is wise to get them
laminated.
Breaking Open of Locker
The locker can be broken open in case of

Loss of key, at hirers request.

If you lose the key,please report immediately . Usually an application is
submitted to Branch Manager. Charges for opening the locker or replacing the
lost key and for changing the lock will have to be borne by you. While some
banks include the cost in the initial security deposit, some charge it later.
Non-payment of locker rent
Non- compliance of terms and conditions of lease agreement at the Banks discretion
like not opening a locker for a period of one year.
Banks can consider opening the locker if it is not operated for a prolonged period,
generally more than three years in the case of a customer in the medium-risk category or one
year for those in the high-risk category, as per the know your customer(KYC) guidelines. This
clause holds true even if the locker owner has been paying his rent regularly and on time,
provided the locker agreement clearly mentions this fact. However, the bank has to first ask the
customer to give a written explanation for not operating the locker, followed by a notice
cancelling the allotment and announcing the opening of the locker
Lockers will be broken open in the presence of the Custodian and one or two outside
respectable persons and an inventory of the articles found in the lockers will be prepared duly
signed by the persons in whose presence the lockers are broken open.
Responsibility of the bank
The Bank in their agreement typically declare that bank will not be responsible or liable for
the contents kept in the locker by the hirer. In case of theft, burglary or similar
unforeseen events, action will be initiated as per law. But there are enough cases where
the courts have backed customers. By establishing that the relationship between the bank and
the depositor is not that of landlord and tenant, these landmark judgements allow you to sue
your bank for equivalent compensation in case of burglary or if the lockers contents are
damaged by termites, water seepage and the like, barring natural disasters.
After a robbery at an Indian Overseas Bank branch in a Chennai suburb in 2012, the
police discovered that most bank branches in the city hadnt installed devices such as
security alarms, closed-circuit television (CCTV) cameras or burglar alarms, among
others.
In November 2011, a locker mechanic of a private firm was nabbed with gold worth
Rs 20 lakh stolen from the lockers of Andhra Bank in Koritapadu in Guntur city . The
bank staff initially rubbished the customers claims. But after going through the video
evidence, the police found that the lockers were handed over to official mechanics for
annual maintenance, and the crime was committed during the period.

So banks in all cases cant skip their responsibility on flimsy grounds, but it is always
wise to tread with care as proving any negligence on the part of the bank is not easy
Alternatives to bank deposit lockers
Are there any alternatives to bank deposit lockers. Yes
Private Lockers
Private companies such as India Safety Vaults (present in Mumbai and Pune) and Navketan Lockers(Hyderabad and Mumbai). Rate
card from Navketan Lockers for Locker Type A is given below

Total Rent

Service
Tax
@
12.36%

Caution
Deposit
(Refundable)

Total
Amount
Payable

Locker Type

Rate Plan

Rate
Year

One Year

3,600.00

3,600.00

445.00

2,500.00

6,545.00

Three
Years

2,880.00

8,640.00

1,068.00

2,500.00

12,208.00

Five
Years

2,340.00

11,700.00

1,447.00

2,500.00

15,647.00

Comparing Bank Lockers and Company Lockers

Accessibility
Number
lockers

Cost

of

Bank Lockers

Company Lockers

Only during office hours; Sundays

closed

Open all day and holidays.

Limited number of
bank; can be added

2,000-4,000 per branch

lockers

per

Annual rental (depends on the size

of the locker and from branch to
branch), security deposit or fixed
deposit.

Security deposit, between three

months and three years of
advance. No annual rental

Jewellery Insurance
There are few standalone jewellery insurance products. such as Axis Bank, Tata
AIGs cover is for people with high net worth.
However, one can avail of this cover under a home insurance policy. You need not
buy a comprehensive plan that covers the house structure but can instead opt for a
contents cover under which there is a jewellery and valuables protection section. The
contents section covers accidental loss, damage, burglary and theft of jewellery and
other precious items, including jewellery kept in some specified bank lockers. Some
also cover jewellery worn in person. There is usually a sub-limit for jewellery. For
instance, the maximum cover may be 25 per cent of the total sum insured for
contents. This means if the contents cover is for Rs 5 lakh, jewellery worth only Rs
1.25 lakh will be covered.
There are policies with a separate all-risk cover section for jewellery and valuables
where one can choose a suitable sum insured. The four public sector general
insurers-Oriental Insurance, United India Insurance, The New India Assurance and
National Insurance-offer such policies.
Some Dos and Donts for Bank Lockers
A locker should not be at a lonely place nor should it be at a place with very
thick with moving population, like a bus stand, taxi stand, railway station, etc. It
should be near your house as you dont want to cart your valuables across town

You also need to keep a written record of your contents in the locker. In case of
a theft, at least you will know what was stolen.
If you are keeping documents in lockers, it is wise to get them laminated.
It also makes sense to operate lockers as in a joint-holding or nominationbased mode.This ensures that in case of death of the person, the lockers can still
be operated or the contents smoothly handed over to the legal heirs

BASIC SERVICE CHARGES: SAFE DEPOSIT LOCKER/SAFE CUSTODY

BASIC SERVICE CHARGES: SAFE DEPOSIT LOCKER/SAFE CUSTODY

1.

Safe Deposit Lockers Annual Charges

1.Locker

Metro & Urban

Semi-Urban & Rural

Type of Locker

Size

SMALL

Size A 125 X 175 x Rs.1,100/- +ST

492
Size B 159 X 210 X
492

Rs.800/- +ST

MEDIUM

Size
492
Size
492
Size
492
Size
492

C 125 X 352 X Rs.2,800/- +ST

Rs.1,800/- +ST

D 189 X 263 X
E 159 X 423 X
H1 325 X 210 X

LARGE

Size F 278 X 352 X Rs.6,000/- +ST

492
Size G 189 X 529 X
492
Size H 325 X 423 X
492

EXTRA LARGE

Rs.5,000/- +ST

Size L 404 X 529 X Rs.8,000/- +ST

492
Size L1 385 X 529 X
492

Rs.7,000/- +ST

In case of loss of key of the lockers, a service charge of

Rs.750/- +ST has to be recovered from hirer in addition to the
actual expenditure incurred in breaking open the locker and
changing of key by manufacturer of lockers.
One Time Locker Registration Charges:- Rs.500/- +ST
No. of Locker visits per year: 12 visits free: thereafter Rs.100/+ST per visit
Locker Rent Overdue Charges:
1st Quarter

10% of annual rent.

2nd Quarter

25% of annual rent

3rd Quarter

40% of annual rent

1yr

50% of annual rent.

** to be recovered manually.

2.

Safe custody charges

3.

Scrips (for
each scrip)

Sealed cover
(for each cover)
Banks own
deposit receipt
Safe deposit articles

Rs.150/- +ST per scrip. Min.

Rs.300/- +ST p.a. or part thereof
Rs.300/- +ST per cover p.a.
or part thereof.
Nil

Rs.600/- +ST one time charges for all types

of Safe Deposits Articles Additional charge
for Envelop - Rs.150/- +ST p.a.
Additional charge for Packet: Rs.600/- +ST
p.a. Additional charge for Large packet / Box

Rs.1200/- +ST p.a. (100 cm- max) Beyond

that Rs.50/- per. cm. + ST