How much cash is compensated for when it is kept in a bank locker? understand the RBI's rules

 How much cash is compensated for when it is kept in a bank locker? understand the RBI's rules

You must have all heard about bank lockers frequently. Important documents, jewelry, and many other goods are stored in this locker. It is quite secure. Also, many individuals keep money in it. Let us inform you that the bank will compensate you for any items kept in the locker in the event of a theft or accident.

A bizarre occurrence recently took place in a Bank of Baroda branch. The cash worth Rs. 18 lakh that was kept in the bank locker was destroyed by termites. When the account holder opened the locker, he discovered cash notes covered in termite damage. Following this, the account holder complained to the bank's branch manager, and an investigation was subsequently launched. The question now is whether or not the account holder will receive reimbursement in such a circumstance.

Ambala, Haryana, has witnessed an instance of same nature. Here, there was a theft that occurred in a bank locker owned by the government. Come today, and we'll go over the Reserve Bank of India's (RBI) regulations regarding bank lockers in detail.

RBI regulations

The Central Bank issued a circular last year, which is to say in 2022. This circular mandated that all locker owners update their locker contracts by January 2023. Following this, the bank was required to provide RBI with both the list of empty lockers and the waiting list for its lockers. In addition, any bank customer may borrow a locker for a maximum of three years. The bank will reimburse the customers for any losses if the items kept in the locker are damaged.

Additionally, the customer is required to abide by the bank's locker policies. If the customer maintains the items in accordance with the bank's requirements, the bank will unquestionably make up for his loss. The bank will also need to be concerned with the security of its facilities. What things can be stored in the bank locker in this circumstance is the current query.

What things are allowed in the locker?

Only jewelry, official documents, and legal commodities may be stored in a customer's bank locker. The bank will cover the loss in the event that these items are stolen or damaged in any other way. At the same time, the locker cannot be used to store anything like cash, foreign currency, firearms, drugs, or other kinds of medications. No loss will be covered if you keep something like this.

This implies that, in the event of an incident involving a Bank of Baroda locker, the account holder will not get any sort of compensation. In addition, the account holder will receive reimbursement for the Ambala bank locker incident.

How much will you be compensated?

The bank will only compensate the customer with 100 times the fare. The bank will only pay 100 times the fee even if a customer retains 100 times more items in his locker than the allowed annual rent.