Bank Locker: Can we keep cash in a bank locker? Does the bank compensate for the loss if valuables are lost?

Many people rent bank lockers to keep their precious jewellery, important documents, and personal belongings safe. Customers can also take a joint locker if they wish. For this, both the customers have to come to the bank and sign a joint memorandum. A nominee can also be made for the locker. If the locker holder dies and he has made someone a nominee, then after complete verification, the bank allows that person to open the locker and take out the items. You cannot keep whatever you want in the locker. RBI has also made a list of what can be kept in the locker and what cannot. As far as cash is concerned, banks do not allow keeping cash in the locker.

You can keep jewellery, property-related documents, loan documents, birth or marriage certificate, documents like insurance policies, and legally valid items in the locker. According to RBI guidelines, keeping cash and currency in the locker is prohibited. Apart from this, you cannot keep weapons, ammunition, drugs, explosives, contraband material, perishable or radioactive items, or anything that causes trouble for the bank or customers in the locker.

The agreement is done on stamp paper.
RBI issued revised rules for Safe Deposit Locker in August 2022, which have been implemented on old locker holders from January 2023 and on new customers from January 2022. Under these rules, it is now necessary for banks to enter into a locker agreement with customers on a new stamp paper. Banks can charge rent for a maximum of three years at a time. The bank has to make public the information about empty lockers and waiting lists.

Will the bank compensate for the loss?

According to the rules of the Reserve Bank of India, if the goods kept in the locker are damaged due to the negligence of the bank or lapse in security, then the bank will have to compensate for its loss. Banks are responsible for incidents like fire, theft, robbery, or building collapse. However, if the items kept in the locker get destroyed due to natural disasters like floods or earthquake, then the bank will not be responsible. Here it is also important to know that if the item kept in the locker gets lost or destroyed, then the bank does not pay the full value of that item to the customer. Compensation is given only up to 100 times the annual rent. For example, if the annual rent of the locker is ₹ 1000, then the maximum compensation can be up to ₹ 1 lakh only.

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