RBI extends time for renewal of pacts for existing lockers

In August, 2021 the Reserve Bank of India (RBI) had asked banks to enter into revised agreements with the existing locker holders by January 1, 2023

January 23, 2023 06:38 pm | Updated January 24, 2023 09:44 am IST - Mumbai

The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai.

The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai. | Photo Credit: Reuters

The Reserve Bank of India (RBI) has decided to extend the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner by December 31, 2023, with intermediate milestones of 50% by June 30, 2023, and 75% by September 30, 2023. The earlier deadline was January 1, 2023.

“Further, banks have been advised to make necessary arrangements to facilitate execution of the revised agreements by ensuring the availability of stamp papers,” the RBI said in a circular.

“Further, in cases where operations in lockers have been frozen for non-execution of agreement by January 1, 2023, the same shall be unfrozen with immediate effect,” the circular said.

Necessary instructions in this regard have been issued to the banks, the RBI said.

The RBI vide its circular dated August 18, 2021, had issued revised instructions with respect to safe deposit locker/safe custody article facility that required banks to enter into revised agreements with the existing locker holders by January 1, 2023.

However, it has come to the notice of the RBI that a large number of customers are yet to sign the revised agreement. In many cases, the banks are yet to inform the customers about the need to do so before the stipulated date [January 1, 2023],” the central bank said.

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