CHAPTER 12

CHAPTER 12 – Lockers

Lockers
Operations Manual – Branch Banking March, 2018

Part ‘A’ – Guidelines

Table of Contents

CHAPTER 12 – Lockers ................................................................................................................ 0

1. Introduction .......................................................................................................................... 2
2. Location & Setup ................................................................................................................. 2
3. Verification and Marking of keys ........................................................................................ 3
4. Security ................................................................................................................................ 4
5. Issuance/Allocation of Lockers............................................................................................ 4
6. Specimen Signature Card(s) ................................................................................................ 5
7. Admission of Signature........................................................................................................ 5
8. The Terms and Conditions ................................................................................................... 5
9. Photographs.......................................................................................................................... 6
10. Issuance of Locker in System & recovery of Security deposit & Rental ......................... 6
11. Locker Account Register .................................................................................................. 6
12. Locker Operations ............................................................................................................ 7
13. Monitoring of Rent Collection ......................................................................................... 7
14. Repossession of Lockers .................................................................................................. 8
15. Surrender of Lockers ........................................................................................................ 9
16. Locker Breaking – Loss of Key ..................................................................................... 10
17. Locker of Deceased Customer ....................................................................................... 10

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Operations Manual – Branch Banking March, 2018

1. Introduction

1.1. This document deals with complete operations of Locker issuance, handling and
reporting.

1.2. Safe Deposit lockers facility at the branches can be effectively used to mobilize
deposits and attract business accounts.

1.3. Locker’s facilities shall not be allowed to non-account holders.

1.4. More than one locker shall not be allocated to single account holder within the same
branch.

1.5. Locker’s Operation shall not be permitted under Power of Attorney of a customer. A
customer wishing to allow another person may be requested to open a new Locker
Account under joint names and close the existing locker account.

1.6. Locker in joint name can be allotted if either of the locker holders maintains account
with any MBL branch.

1.7. Lockers should be provided to the customers who have potential for deposits and other
banking business. The decision to issue locker should be taken by the branch
management in light of above and other factors.

1.8. In exceptional cases e.g. unavailability of locker at customer own branch etc., Locker
facility to other MBL branch customer can be provided subject to availability of lockers
in the branch. In that case, approval and recommendation of Area Managers of both
branches will be mandatory.

1.9. In case of “Saturday on” branches, locker operation is allowed on Saturday.

2. Location & Setup

2.1. Lockers are required to be located separately from cash strong room in a specially
designated area protected with strong room doors and grills under control of two officers.
Each locker should be equipped with a dual control lock, operated by the use of a
master key and customer's key supplied to the customer at the time locker is rented.

2.2. Branch Manager shall designate an officer as the locker custodian. A notice
(Annexure 1) shall also be put in the branch, in a prominent place, for customers
intimation / knowledge. In case of any change in locker custodian, a revised notice
shall also be displayed in the branch. During working hours, the locker custodian
shall hold the key required for the operation of the safe deposit locker facilities which
are as under:

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Operations Manual – Branch Banking March, 2018

• Master Key
• Grill Gate Key

2.3. Master key and grill door key shall be kept separately under safe custody of designated
officer.

2.4. Both Master Key & Grill Gate keys shall be lodged overnight in the vault under dual
custody of the vault key custodian

2.5. Properly sealed envelopes with signatures of custodians (not just stapled) containing
customer keys of unrented lockers should be placed under dual custody of locker
custodian and OM/ BM. No other staff shall not have access to unrented keys.

2.6. Proper recording of Keys including any changes in custodian of keys should be
maintained in Branch Key Register.

2.7. Storage of Unrented Locker Keys – Dedicated Locker

2.7.1. Branch may also assign/dedicate one unrented locker for storage/safe keeping of
keys. Locker register shall be updated accordingly with joint signatures of BM
and OM. This locker should be issued in the name of Branch, Meezan Bank.
Keys of this locker should always be held with Branch Manager/Manager
Operations. This locker can only be used to place unrented keys. No other
valuables, be it personal or official, can be placed in this locker.

2.7.2. Sealed envelopes containing customer keys of unrented lockers should be

placed in assigned locker (with same branch) under custody of OM/BM.

2.7.3. BM/OM should sign the “Licensees’ Attendance Register, whenever there is a
need to operate assigned locker having unrented keys and mention this effect
on the register i.e. for retrieving locker key to assign locker to a customer or
placing locker key for surrendered locker.

3. Verification and Marking of keys

1.1. The customer keys received from the manufacturer of the lockers are required to be
maintained separately by both the custodians. Keys should be individually verified
against each locker in combination with master key to ensure their proper operation and
to detect any mechanical defect in the lockers. In case of any defects, matter should be
brought to the notice of the Manager- Administration, Head Office for necessary action.

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Operations Manual – Branch Banking March, 2018

1.2. After verification, each key is to be placed in an envelope. On each envelope key
number as well as locker number shall be noted and envelope must be sealed with the
signatures of the both custodians (as mentioned in 2.5 above).

1.3. These envelopes should be segregated in accordance with the size of lockers.

4. Security

4.1. Locker identity card shall distinctly display that the card is only for locker operations,
to avoid any possible misuse elsewhere.

4.2. After each visit of Locker Licensee, Locker Custodian should check/verify that
locker is in locked state and no articles have been left outside the locker. In case of
any leftover item or locker is unlocked, the same should immediately be brought in the
notice of BM/OM.

4.3. Locker custodian must ensure that only one locker is being operated at one time.

4.4. No unauthorized person shall be allowed to enter in the lockers room. Cleaning /
Dusting of Lockers by janitorial staff should be performed in the presence of locker
custodian.

4.5. During operation of locker, it shall be ensured that people sitting outside the locker
room cannot see the inside activity of the locker room.

5. Issuance/Allocation of Lockers

5.1. Every application for a safe deposit locker should be supported by:

5.1.1. A separate Application Form duly completed and signed, together with 2 latest
passport size photographs of the applicant / applicants authorized to operate the
Lockers along with a photocopy of identity document.

5.1.2. Fresh NADRA verisys/ Biosys is only required for those applicants who do not
have an MBL Account. Similarly, such applicant names will also be searched in
negative list as per prevailing procedure.

5.1.3. Photographs should be pasted and authenticated by affixing Branch round

stamp and signing the same on following documents:

a. Locker’s Identity Card (LIC)

b. Locker’s application form

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Operations Manual – Branch Banking March, 2018

5.2. In case of companies / partnerships etc., appropriate request / resolutions or such

authorizations as necessary for Locker Facility should be in place, duly authenticated by
competent company’s authority (e.g. in case of Limited Companies competent
authority will be Company Secretary/ CEO). These Resolutions/Authorizations should
clearly establish who is entitled to request/access the locker and under what conditions,
together with 2 latest passport size photographs of all authorized and alternate persons.

6. Specimen Signature Card(s)

6.1. The specific specimen signature card(s) (SSC) for each locker must be obtained, in the
similar manner as done in case of new accounts.

6.2. The blank spaces not used by customer should be stamped “VOID” to prevent
unauthorized insertions.

6.3. Backside of SSC shall be used for recording of rentals.

7. Admission of Signature

7.1. The signature of licensee(s) are to be verified and admitted as per the record of the
branch by the designated officer of the branch, a note on the account opening form
of locker holder’s account should be made that Locker No. ______ Licensed. In case
customer closes his/her account at the branch, locker must also be surrendered.

7.2. The locker application along with all relevant supporting documents etc. shall be filed
in locker number order in locker rental file which will be kept in vault under dual control.

7.3. The SSC shall be kept in locker number order in SSC cabinet / drawer under dual
custody.

7.4. Scanning of locker’s related specimen signature cards are not required.

8. The Terms and Conditions

8.1. The application form for lockers contain all terms/conditions which govern
relationship between the bank and locker holder who is / are licensee(s) (Bank is
licensor who grant license to utilize locker facility against payment of rent).

8.2. At the time of renting the lockers, the custodian shall ensure that all the licensee(s)
shall sign at the back of the application form at the provided space, as token of their
agreement to all rules and regulations which govern this relationship.

8.3. Similarly detail of locker Takaful coverage for different locker size along with
applicable rent is also given at the back of the locker application form. No separate
Takaful letter will be given to the customer.

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Operations Manual – Branch Banking March, 2018

9. Photographs

9.1. Custodian shall write customer’s name and locker number at the back side of both the
photographs.

9.2. All the photographs must be pasted and authenticated on the front by affixing round
stamp of Meezan Bank of the respective branch under the signature of the custodian.

9.3. Branch should also paste the photograph on Locker’s Identity Card (LIC).

10. Issuance of Locker in System & recovery of Security deposit & Rental

10.1. After completion of all formalities as mentioned above, locker should be issued in
Banking system (Temenos T24) in order to have systematic record of lockers and
applicability of rentals.

10.2. Key Deposit and Locker Rental are applicable for the locker’s operations which may
change as per prevailing schedule of charges.

10.3. Key deposit or rent can be waived on certain class of customer/ nature of product
subject to proper management approval / listed in Bank’s Schedule of Charges.

10.4. Key deposit and locker rent are required to be recovered in advance for a minimum of
one year.

10.5. On completion of all the formalities laid-down in this procedure for lockers, custodian
should ensure:

10.5.1. Locker is allocated in system and manual register updated as well.

10.5.2. Customer key is delivered to the Licensee(s).

11. Locker Account Register

11.1. All our branches are required to maintain “Locker Account Register”. Separate
sections shall be allotted in the register for small, medium and large size lockers.

11.2. Following is the Specimen of Locker Account Register. Branches are required to
maintain register in three parts for each type of locker:

Date Locker Key Type of Name, Address, Date of License Fee License Key Initial Initial BM/ Remarks
Rented No. No. Locker Tel. & A/C No. License Fee from Fee to Deposit Custodian OM
S M L

11.3. As locker will be rented out, the details shall be filled in from the application form.

11.4. The locker register shall serve the following purposes:

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Operations Manual – Branch Banking March, 2018

11.4.1. Indicate which lockers are available.

11.4.2. Control and Balancing of key deposit.
11.4.3. Balancing of unissued keys with number of envelopes in hand.

11.5. It is important to note that the number of unrented keys held must agree to the number of
unrented lockers, at any point of time.

11.6. Branch must reconcile Key deposit and Unrented Keys on monthly basis and make
exhibits duly verified by OM/ BM.

12. Locker Operations

12.1. It is mandatory to record all the visits of customer related to Locker’s operation in the
“Licensee Attendance Register”.

12.2. Following is the Specimen of “Licensee Attendance Register”.

Date of Locker No. Time in Time out Licensee Signature of Signature of Remarks
visit names Licensees Custodian

12.3. The custodian must ensure compliance of following instructions before permitting
operation of the locker.

12.4. Specimen signature card at the Bank and Signature of the customer on attendance
register should always be verified to ensure he/she is still authorized to operate the
designated locker, furthermore, custodian should check that all dues / payments are up
to date.

12.5. It is important to note that mere possession of the key and knowledge of the locker
number should not be considered as identification.

13. Monitoring of Rent Collection

13.1. A due date diary (should be a quarterly exercise) with the help of Locker Account
Register shall be maintained to pursue collection of rent on regular basis.

13.2. Rent is recovered by the system on due date subject to availability of fund. In case
of any posting restriction (Debit), system will also not recover the rent. Therefore, in
all such cases manual recovery will be required.

13.3. If the account of the customer does not have sufficient balance, to meet rental dues,
customer should be contacted to deposit rental amount/ funds in the account. The
record of the rentals at the back of S.S. Card must be kept up to date. Any time when
customer comes for operation of the locker, S.S. Card should be referred to make sure
payment is up to date. Customer should be requested to clear all his dues before

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Operations Manual – Branch Banking March, 2018

operation of the lockers.

13.4. In exceptional cases, for instance; account blocked by FBR, locker rent may be
recovered manually and noting shall be done on backside of the locker SS card and
locker register for audit trail. However, prior approval of ROM will be required.

13.5. In case of non-recovery of rental, reminder letters will be sent as listed below:
a) 1st Reminder Letter – The month in which locker rent becomes overdue/ rent not
recovered.
b) 2nd and 3rd Reminder Letters – Next successive months, if rent remains
unrecovered/ overdue.

A sticker should also be affixed over key hole of such lockers mentioning “Rent
Overdue” to avoid any operations prior to settlement of overdue rent. Apart from
sending Reminder Letters, branch should make all efforts to contact customer and
recover rent1.

13.6. On bi-annual basis (January & July), cases where rental have still not been realized and
at least three reminders have been served, matter should be referred to the branch
manager for further action. In addition to above, Branch Manager should monitor the
cases of overdue locker rentals on monthly basis.

13.7. In case a customer wishes to close his account, who is also Licensee(s) of a locker at
the branch or at other branch, he/she would be advised to surrender his/her locker.

14. Repossession of Lockers

14.1. On bi-annual basis (January & July), Branch Manager shall assess each individual case,
wherein at least three reminders of rent overdue along with final notice have been served,
for repossession of locker. The review should comprise the factors of total unrented
lockers and prospects to rent out this locker after repossession.

14.2. Branch Manager shall submit a report (through Area Office) with complete reasons for
repossession of lockers to ROM.

14.3. ROM will assess each case based on requirement of lockers in the branch and approve
repossession on case to case basis.

14.4. After approval from ROM, Advertisement will be placed in renowned daily
Newspapers in both Urdu & English (by the branch) asking such customer(s) to deposit
Locker Rent in One Month or Bank has right to Break the Locker.

14.5. After expiry of notice, Branch will arrange Notary Public representative and Bank
1
Amended as per HO Operations e-mail dated 16th March, 2017

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appointed Lawyer, in consultation with Area Office and HO, Legal Department.

14.6. Branch should arrange Services of Locker Breaking vendor through Administration
Department, Head Office.

14.7. In the presence of Lawyer, Notary Public, representative from Regional/ Area Office,
including OM / BM, vendor will Break the Locker(s).

14.8. All articles extracted from Locker will be listed down & will be sealed in a separate
box/Bag for each locker. Locker No., Name of Locker Holder and Date of Locker
repossession should be noted on the box/bag.

14.9. All persons who witnessed this process will sign on the sealed articles containing articles
placed under dual custody/Safe custody.

14.10. Certificate on bank letterhead should also be prepared with text:

“Lockers were break opened on ......(date) in our presence and the articles extracted
from each locker were sealed and placed in safe custody. List of Articles extracted,
sealed and saved is mentioned below: -

Locker No. Locker Holder Details of Articles extracted

14.11. The said certificate should be signed by all persons in whose presence, lockers were
break opened. The certificate should be filed with locker record.

14.12. The locks of repossessed lockers must be changed before their re-issuance. A notation
in the Safe Deposit Locker Account Register must be made in the remarks column
that locker repossessed and locks are changed under the signature of Custodian and
Branch Manager. T-24system should also be updated accordingly.

15. Surrender of Lockers

15.1. The licensee of a locker may surrender it at any time as per terms and conditions of
the lockers, returning the "Customer's Key" and signing the prescribed surrender form.

15.2. The signature on the surrender form must be duly verified by the custodian prior to
processing.

15.3. Branch shall refund the key deposit to the customer; recovered rental for the year is non-
refundable.

15.4. Branch shall ensure that the lock and key of the surrendered locker has been changed
through bank’s approved vendor and expensed out, prior to issuance to new locker
holder.

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16. Locker Breaking – Loss of Key

16.1. In case of loss of key, branch should follow below mentioned guidelines for breaking
of lockers:

16.1.1. Take customer written request about the loss of key, signed by all locker
holders/ licensees (in case of joint locker holder).
16.1.2. Verify the signature(s) as per Bank record.
16.1.3. Take BM approval for further processing.
16.1.4. Seal the locker by affixing sticker on the keyhole of the locker in presence of
the customer and locker custodian.
16.1.5. Arrange the vendor for the replacement of lock. Lock should only be replaced
in presence of licensees, BM/ OM and locker custodian.
16.1.6. Recover charges plus FED, as per prevailing Schedule of Bank Charges.
16.1.7. Once lock has been replaced, hand over (new) Locker Key to the Locker
Holder.
16.1.8. Obtain following certificate from locker holder:

‘Locker was broke opened in my/our presence & my/our articles are in order.
Further I/we am/are satisfied with the procedure for Break Open of Locker
adopted by the Bank and received Key No. ____________ of my/our Locker
No. ________________.’

16.1.9. Update the Locker Register accordingly.

17. Locker of Deceased Customer

17.1. In case of death of licensee, following guidelines shall be followed:

17.1.1. In Either or Survivor cases, survivor is required to surrender the existing locker
and open new locker with his/her new account.
17.1.2. In Jointly operated/ single locker, operation of locker will be stopped.
17.1.3. Upon receipt of succession certificate, same will be forwarded to ROM along
with other documents as per deceased account policy for approval.
17.1.4. After ROM approval, locker will be broken/ open in presence of all successors
(as per succession certificate) and OM & BM of the branch and belonging will be
handed-over to successor(s).
17.1.5. A proper list of all belongings will be recorded and receiving of successors(s)
will be obtained over the same.

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Operations Manual – Branch Banking March, 2018

ANNEXURE 1

Notice of Locker Custodian

Attention all Customers, please note that the Locker

custodian for Meezan Bank’ ____________________
Branch (Br. Code) is as follows:

Name of Locker Custodian

Employee Number

Designation

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Operations Manual – Branch Banking March, 2018

Part ‘B’ – Standard Operating Procedures (SOPs)

Table of Contents
12. ................................................................................................................... Safe Deposit Lockers
...................................................................................................................................................... 12
12.1. Procedure - Issuance of Lockers ................................................................................. 12
12.2. Procedure - Locker Operations ................................................................................... 13
12.3. Surrender of Lockers .................................................................................................. 14

9. Safe Deposit Lockers

The under mentioned Standard Operating Procedures (SOPs) are designed in line with its
corresponding guidelines

9.1. Procedure - Issuance of Lockers

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Operations Manual – Branch Banking March, 2018

FUNCTION Issuance of Lockers (12.1)

AREA Branch Banking – Operations
S.No. Activity Responsibility
12.1.1. Receive following documents from customer: - Officer / Locker
- Locker Application Form Custodian
- Signed SS Card
- Two photographs
- CNIC Copy
Notes:
- Locker holder should be account holder.
- Signatures and photographs of all applicants
authorized to operate the locker.

12.1.2. - Obtain customer’s signature verification in Officer / Locker

accordance with specimen & operating instructions Custodian
on SS Card.
- Allocate Locker NO. and Key Number from
available lockers and note the same on Application
Form, Back of photos & ID Card.
- Paste Customer’s photograph on Locker Application
Form2 and Locker ID Card
- Log into T-24 System and issue Locker by entering
relevant details.
- Review all documents for completion / correctness
and handover to BM/OM.

12.1.3. - Review application to ensure that the same is BM/OM

completely & correctly filled.
- Sign / Authorize all the documents and entry in
system, ensure that Rental and Security Deposit
recovered.

12.1.4. Update Record in Locker Register. Officer / Locker

Custodian
12.1.5. Deliver Locker Key and Locker ID Card to customer. Officer / Locker
Custodian
12.1.6. Officer / Locker
File Customer’s Application, SS Card and other documents.
Custodian
9.2. Procedure - Locker Operations

2
Amended as per HO Operations e-mail dated 22nd May, 2017

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FUNCTION Locker Operations (12.2)

AREA Branch Banking – Operations
S.No. Activity Responsibility
12.2.1. Customer visits branch and presents Locker ID Card Officer / Locker
Custodian
12.2.2. - Enter details in ‘Licensee Attendance Register’ and Officer / Locker
obtain customer’s signature. Custodian
- Verify Signatures through Locker SS Card

12.2.3. Takeout Master Key and operate on Customer’s Locker in Locker

his/her presence Custodian

12.2.4. Note ‘Time out’ in the register upon customer’s return and Officer / Locker
sign the register. Custodian

9.3. Surrender of Lockers

FUNCTION Surrender of Locker (12.3)

AREA Branch Banking – Operations

S.No. Activity Responsibility

12.3.1. Customer visits branch and submits following: - Officer / Locker
- Locker Surrender Form / Request to surrender the Custodian
locker.
- Locker Key
- Locker ID Card

12.3.2. Verify Signatures through Locker SS Card. Officer / Locker

Custodian

12.3.3. Update ‘Locker Module’ in T24 system for surrendering Officer / Locker
locker and refund Security Deposit in customer’s account. Custodian

12.3.4. - Ensure that there is no outstanding Rental, Security BM/OM

Deposit refunded & Locker Key received.
- Sign / Authorize all the documents and entry in
system

12.3.5. Update Locker Issuance Register Officer / Locker

Custodian
12.3.6 Place Locker Key in separate “Surrendered Key Envelope” BM / OM
along with sealing it and keeping it in safe custody.

Note: Branch shall ensure that the lock and key of the

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FUNCTION Surrender of Locker (12.3)

AREA Branch Banking – Operations

S.No. Activity Responsibility

surrendered locker has been changed through bank’s
approved vendor and expensed out, prior to issuance to new
locker holder.
12.3.7 A sticker should be affixed over such lockers mentioning Locker
“Surrendered locker” until the lock of the locker has been Custodian
changed. Area office shall be notified of the surrendered
locker
12.3.8 Yearly or as when required, Ascertain the requirement of Area Office
changing the locks & keys. Call the Bank’s approved vendor
to replace the lock and key informing the branches for
change of lock via email.
12.3.9 Upon visit of vendor, have the lock changed in personal Locker
presence of locker custodian & OM / BM and hand over the Custodian &
new keys (in sealed envelope) to the OM. OM / BM
Note:
• OM shall inform the area office regarding the change
of lock and key.
• “Surrendered locker” sticker shall be removed from
the locker by the locker custodian / OM
12.3.10 Place the new Locker Key in sealed envelope as per process, Locker
along with all the Unrented Keys. Custodian &
OM / BM

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