In the past two years, the Reserve Bank of India (RBI) has launched a series of reforms to enhance the use of bank lockers for its customers. The new guidelines, introduced in phases from 2023-2025, cover all public and private sector banks that provide locker facilities. These rules address how lockers are operated, what can be put in them, and what happens in the event of theft, damage, or disputes about access.
New Revised Agreement Still Hanging for Most Customers
In January 2023, the RBI instructed all banks to enter new agreements with current locker holders. The move was aimed at establishing more specific responsibilities for banks and customers.
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But most banks were unable to do it within the required timeframe. Thus, the RBI again postponed the deadlines—initially to December 2023, and then again, since a vast majority of customers were still not in compliance. Till mid-2025, almost 20 per cent of locker holders remain unsigned on the new agreement.
Biometric Access and CCTV Made Mandatory
One of the most important changes has been in how access to lockers is to be managed. Banks have been asked to instal biometric verification systems in the locker rooms, such as fingerprint or iris scanners, along with security cameras. These cameras must record continuously and store footage for at least 180 days. Every time a locker is accessed, the customer must be alerted through SMS or email. These measures are aimed at preventing unauthorised access and to improve traceability.
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Compensation Not Exceeding 100 Times Annual Rent
The new rules have also covered a significant concern regarding the amount of compensation to be provided to customers in the event of loss. If a customer's locker deposits are lost or damaged as a result of negligence by the bank—by way of fire, theft, or the involvement of its employees—the bank will now compensate the customer up to 100 times the locker's yearly rent. This obligation does not extend to natural disasters or damages caused by the negligence of the customer.
Limitations on What May be Placed in Lockers
There is another change that addresses what can and cannot be placed in lockers. No customer can store cash, arms, explosives, or any hazardous or perishable items in the lockers. Banks are authorised to end locker services in case such items are discovered, and to open lockers after three years of inactivity if the customer does not respond to any notices.
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Nominee Access to be Done within 15 Days
Rules of nomination have also been made more precise. Upon the death of a locker holder, the bank now has to transfer the contents to the nominee or lawful heir within 15 days of obtaining the valid documents. This has been done to prevent unnecessary delays and legal challenges regarding access.
Banks Urge Final Deadline Extension Till December 2025
Even though these guidelines have existed since early 2023, the complete rollout across customers and banks has been inconsistent. As the last date of compliance is now anticipated to be pushed to December 2025, banks are contacting customers to finalise the agreement procedure. If neglected, access to the lockers might get limited or even locked forever.
