Bank Locker Agreements: Why did RBI extend the deadline?

The RBI has also asked the Indian Banks Association (IBA) to review the model locker agreement and send it to banks by February 28, 2023.

By when can customers renew their existing agreements?

RBI has extended the deadline for banks to renew locker agreements with existing locker customers in a phased manner to December 31, 2023. The central bank has asked banks to inform all their existing locker customers about the renewal requirement by April 30, 2023. Banks will have to ensure that at least 50 per cent of their existing locker customers have renewed agreements by June 30 and 75 per cent by September 30, 2023.

How will banks aid customers?

The RBI has advised banks to facilitate execution of the fresh/supplementary stamped agreements by taking measures such as arranging stamp papers, franking, electronic execution of agreements and e-stamping, among others. Lenders will provide a copy of the executed agreement to customers.

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Why did the RBI extend the timeline?

In August 2021, the RBI, in a circular, directed banks to renew these agreements by January 1, 2023. However, in a recent review, the RBI found that a large number of customers were unable to renew locker agreements and were having difficulties in executing the same.

In many cases, banks did not inform customers about the need to renew locker agreements before January 1, 2023. The deadline has also been extended as the RBI was of the opinion that the model agreement drafted by the IBA needs a revision to fully comply with the revised instructions issued in August 2021.

What happens to customers whose locker operations have been frozen?

In the absence of the execution of revised locker agreements by January 1, 2023, a few banks had frozen locker operations of some customers. RBI has asked banks to lift the restrictions on such lockers on an immediate basis.