Banks are not responsible for lockers’ contents

According to guidelines of the Reserve Bank of India,a savings bank account should be treated as inoperative/dormant if there are no transactions in the account for a period over two years. Hence,you need to contact your bank for activation of the account. There should not be any activation charges for an inoperative account,in view of the regulatory guidelines.

Is it important to insure the valuables kept in a bank locker and in case there is a theft from the bank locker will the bank compensate?

-Subhojit Sen

The contract between the banker and locker holder is that of lessor and lessee. There is no question of insurance or compensation since the bank is not aware of the contents kept inside the locker. However,banks exercise due care and take necessary precaution for the protection and security of the lockers provided to the customer.

Can I pledge my life insurance papers to a public sector bank to avail a short-term loan for a year?

– K S Rao

Life insurance policies with surrender values can be pledged by the policyholder for availing a loan from the bank. This facility is called the “assignment” of the policy in favour of bank. The provision of loan against a life insurance policy is basically an advance against the surrender value of the policy,with some margin. Moreover,the policy should be having the sufficient surrender value to cover the loan. You may check with your life insurance agent whether your policy is fit for assignment.

Does a bank charge a fee for SMS alerts they send on each transaction in savings bank account?

-Pooja Jain

Normally,banks do not charge a fee for sending SMS alerts for transactions in savings bank account. However,since banks have freedom in deciding their service charges,it is always advisable that you check the same from your bank. I can say for my bank that no fee is charged for SMS alerts.

Where can I get my bank-related grievences addressed and how should I go about it?

-Rajinder Tiwari

The first and most effective point of grievance redressal is the branch. You can also call or write to the customer care department of the bank and seek resolution. If you are not satisfied with the response of the bank or if the response is not received within one month of representation or is rejected by the bank,then one can also file a complaint before the Banking Ombudsman. This is an expeditious and inexpensive forum for customers for resolution of complaints relating to certain services rendered by banks.

* The writer is executive director,Union Bank of India

* Send your queries at fepersonalfinance@expressindia.com