Understand the need to visit your Bank locker periodically

By March 16, 2021 Money Matters

Sourced with thanks from livemint.com

Most of you must be using a bank locker to keep your key documents, jewellery and other valuables. But did you know that you need to visit your locker periodically? Find out why you need to and what happens if you don’t in the article below. Team RetyrSmart

Understand the need to visit your Bank locker periodically

Customers typically avail the facility of bank lockers to keep jewellery and important documents safe, and once done they fail to visit their lockers on a regular basis.

Reserve Bank of India (RBI) regulations require you to visit the bank locker at least once a year, else your bank may open the locker. However, in case you fall in the low-risk category, you may get more time. Those who fall in the medium risk category the bank will send a notice only if the locker remains un-operated for more than three years as per RBI regulations.

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Banks classify their customers in different risk categories–low, medium, high–depending on various parameters such as financial or social status, nature of business activity, location of customers and their clients. Banks are required to carry out proper due diligence before allotting a locker to a person.

In case a locker has remained idle for long, the bank is required to send a notice to the locker holder advising him to either operate or surrender the locker facility. The bank needs to ask you to provide a written response regarding the reason for not operating the locker.

If the reasons mentioned are genuine, that is, if you are a Non-Resident Indian (NRI) or you were not in the city due to transferable job or any other genuine reason, then the bank can allow you to continue with the locker facility.

If you fail to provide a proper explanation, the bank can cancel your allotment and allocate it to someone else even if you have been paying rent regularly but haven’t operated the account in the prescribed time limit.

To open a bank locker, the bank has to follow a proper procedure. Every bank is required to inform the customer about this clause. This is supposed to be the part of the agreement of hiring a locker facility.

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