Executive Summary:
This circular from the Reserve Bank of India addresses the renewal of safe deposit locker agreements. It extends the deadline for banks to renew agreements with existing customers to December 31, 2023, due to a low rate of renewal and difficulties faced by customers. Banks must notify customers of revised requirements by April 30, 2023, and meet interim renewal targets by June 30 and September 30, 2023. The Indian Banks Association (IBA) will revise the Model Agreement by February 28, 2023.
Key Points / Main Content:
* **Extension of Locker Agreement Renewal Deadline:**
* The deadline for banks to renew locker agreements with existing customers is extended to December 31, 2023.
* **Revised Renewal Targets:**
* Banks must notify all customers of revised requirements by April 30, 2023.
* Banks must have revised agreements executed with at least 50% of existing customers by June 30, 2023.
* Banks must have revised agreements executed with at least 75% of existing customers by September 30, 2023.
* **Reporting Requirements:**
* Banks must report compliance status monthly on the DAKSH supervisory portal.
* **IBA Model Agreement Revision:**
* IBA is advised to revise the Model Agreement by February 28, 2023, to comply with the circular dated August 18, 2021.
* **Agreements Executed Before IBA Revision:**
* RBI circular dated August 18, 2021, specifically Part VII on compensation policy/liability of banks, will still apply to agreements executed before the IBA revision, even if not explicitly stated.
* Banks can execute fresh or supplementary agreements.
* The cost of stamp paper for fresh/supplementary agreements may be borne by the banks.
* **Facilitation of Agreement Execution:**
* Banks should assist customers with executing agreements through measures like arranging stamp papers, franking, or electronic execution.
* Banks must provide a copy of the executed agreement to the customer.
* **Unfreezing of Locker Operations:**
* If locker operations were frozen for non-execution of agreements by January 1, 2023, they must be unfrozen immediately.
Impact Analysis:
* **Commercial Banks (including RRBs, Small Finance Banks, Payment Banks, Local Area Banks, and Cooperative Banks):**
* Impact: Required to renew locker agreements, meet deadlines, report compliance, and facilitate agreement execution.
* Action Required: Notify customers, revise agreements, meet renewal targets, report compliance, and assist customers with agreement execution.
* **Locker Customers:**
* Impact: Need to execute revised locker agreements.
* Action Required: Cooperate with banks in executing the revised agreements.
* **Indian Banks Association (IBA):**
* Impact: Responsible for revising the Model Agreement.
* Action Required: Review and revise the Model Agreement by February 28, 2023, and circulate it to all banks.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the issuing authority of this circular.
Commercial Banks: Refers to all commercial banks, including Regional Rural Banks (RRBs), Small Finance Banks, Payment Banks, and Local Area Banks, which are addressees of the circular.
Cooperative Banks: Refers to All Cooperative Banks, which are addressees of the circular.
Safe Deposit Locker/Safe Custody Article Facility: The subject matter of the circular, concerning the provision of safe deposit locker facilities by banks.
RBI circular DOR.LEG.REC4009.07.005/2021-22 dated August 18, 2021: The original circular regarding locker agreements, which this notification amends and extends.
Indian Banks Association (IBA): An association of banks that is tasked with revising the Model Agreement for locker facilities.
DAKSH supervisory portal: The platform through which banks are required to report compliance with the instructions in the circular.
Mumbai, Maharashtra: Location of Consumer Education and Protection Department, Reserve Bank of India
भारतीय �रजवर् ब�क
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2022-23/168
CO.CEPD.PRS.No.S1233/13-01-018/2022-2023 January 23, 2023
All Commercial Banks (including RRBs,
Small Finance Banks, Payment Banks
and Local Area Banks)
All Co-operative Banks
Safe Deposit Locker/Safe Custody Article Facility provided by banks
Please refer to the RBI circular DOR.LEG.REC/40/09.07.005/2021-22 dated
August 18, 2021 on the captioned subject.
2. In terms of paragraph 2.1.1 of the said circular, banks were required to renew their
locker agreements with existing locker customers by January 1, 2023. However, it has
come to the notice of the Reserve Bank that large number of customers are yet to
execute the revised agreement and are facing difficulties in doing the same. In many
cases, the banks are yet to inform the customers about the need for renewal of
agreements before January 1, 2023. Further, there is a need for revision in the Model
Agreement drafted by the Indian Banks’ Association (IBA) to fully comply with the
revised instructions.
3. Considering the above aspects, the deadline for banks is being extended in a
phased manner to December 31, 2023. Banks are advised to notify all their customers
of the revised requirements by April 30, 2023 and ensure that at least 50 per cent and
75 per cent of their existing customers have executed the revised agreements by June
30 and September 30, 2023 respectively. Banks shall report the status of compliance
with these instructions on the DAKSH supervisory portal of the Reserve Bank on a
monthly basis.
4. IBA is being advised separately to review and revise the Model Agreement to
ensure that it complies with the requirements of circular dated August 18, 2021 and
circulate a revised version to all banks by February 28, 2023. There may be instances,
उपभोक्ता �श�ण और संर�ण �वभाग, भारतीय �रज़व र्बक� , पहल� मंिजल, अमर भवन, सर पी.एम. रोड, मुंबई-400 001
टेल�फोन: (022) 22630483 फैक्स नं: (022) 22630482 ईमेल: cgmcepd@rbi.org.in
Consumer Education and Protection Department, Reserve Bank of India, 1st Floor, Amar Building, Sir P.M. Road, Mumbai-400 001.
Tel: (022) 22630483 Fax: (022) 22630482 E-mail: cgmcepd@rbi.org.inwhere the revised agreements already executed in pursuance of circular dated August
18, 2021 are at variance with this revised IBA Model Agreement. In such cases, all
the provisions of the said circular of the RBI, in particular Part VII thereof on
compensation policy/liability of banks, shall continue to apply to banks even if not
explicitly stated in the agreements already executed. Further, in such cases, banks
shall have the option to execute fresh agreements or revise them through
supplementary agreements. The cost of stamp paper in such cases may be borne by
the banks.
5. Banks are advised to facilitate execution of the fresh/supplementary stamped
agreements with their customers by taking measures such as arranging stamp
papers, franking, electronic execution of agreement, e-stamping, etc. and provide a
copy of the executed agreement to the customer. Where operations in lockers have
been frozen for non-execution of agreement by January 1, 2023, the same should be
unfrozen with immediate effect.
Yours faithfully,
(Anupam Sonal)
Chief General Manager
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