Safety measures for bank lockers

• About 1.10 crore bank lockers were operational in Public Sector Banks (PSBs) as on March 31, 2025, Finance Minister Nirmala Sitharaman said in a reply in Lok Sabha.

• Over 11 lakh locker facilities are currently operated by Rural Cooperative Banks. 

• As many as 40 cases of locker theft have been reported in PSBs during FY 2020-21 to FY 2024-25. 

• Appropriate compensations as per RBI’s guidelines and Board approved policies of banks have been paid in these cases, she said.

• The Reserve Bank of India (RBI) does not maintain data relating to instances of gold or other valuables kept in bank lockers going missing.

• Banks cannot see or record what valuables customers store in lockers, as it would lead to a breach of banking regulations, the Finance Minister said.

Are banks liable for loss of locker contents?

• The RBI has issued ‘Deposit Locker/Safe Custody Article Facility provided by the banks - Revised Instructions’, on August 18, 2021 and the banks have been advised to frame their own Board approved policy/operational guidelines, considering the same. 

Some of the key instructions include: 

i) Model locker agreement for adoption by banks.

ii) Enhanced standards of safety and security both for mechanical and electronic lockers have been prescribed.

iii) The area housing the locker shall remain adequately guarded at all times.

iv) Provision of alerts to locker hirers through SMS and email for locker operation.

v) A detailed procedure has been prescribed for discharge of locker contents by breaking open the locker under various circumstances, at the request of:

a) Customer 

b) Law enforcement agencies 

c) Non-payment of locker rent for more than three years 

d) Locker remaining inoperative for seven years. 

vi) A Liability / Compensation policy has been prescribed. 

• RBI has introduced ‘The Reserve Bank - Integrated Ombudsman Scheme, 2021’ with the objective of enabling resolution of complaints, if any, relating to services rendered by banks to facilitate the satisfaction or settlement of such complaints. Banks take steps in accordance with the said RBI advice/guidelines.

• Banks have been advised to form a branch insurance policy with the approval of the Board to minimise the loss due to incidents like robbery, fire, natural calamities, loss during shifting/merger of branch, etc, affecting contents of lockers. 

• As per the RBI’s circular, banks are liable for loss of locker contents arising from incidents such as fire, theft, burglary, dacoity, robbery, building collapse or employee fraud, where such loss is attributable to the bank’s negligence or deficiency.

• It is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed. 

• Bank has the responsibility to ensure that the aforesaid incidents do not occur in the bank’s premises due to its own shortcomings, negligence and by any act of omission/commission. 

• In such instances where loss of contents of locker are due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker.

• Banks have put in place several security measures to ensure the safety of locker facilities and to maintain public confidence, including for senior citizens and small depositors. 

• The locker units are kept either in strong rooms or in a safe as per Bureau of Indian Standards specifications. 

• Bank branches have been provided with security equipments like closed circuit televisions, burglar alarms with passive infrared devices, fire alarm systems covering the entry and exit of strong room and the common areas of operation, besides measures for proper physical security. 

• These arrangements are subject to regular audit of security.

• Further, as per the RBI’s said circular, banks are advised to take necessary steps to ensure that the area in which the locker facility is housed is properly secured to prevent criminal break-ins and to securely protect against any natural/ man-made hazard damaging the lockers. 

• The standards/ benchmarks have also been prescribed for the lockers installed by the banks.