Increased KYC, Higher Locker Charges Lead 56% Holders To Close Or Downsize: Survey
About 56 per cent of locker holders have either shut down their lockers or are planning to do so, with some opting to shift to smaller alternatives, according to a recent survey.
The survey also highlighted that the allegations have surfaced, suggesting that banks may be violating terms to enforce locker charges.
The survey data showed that while 36 per cent of respondents have “shut the locker” in the last three years; 16 per cent have been “paying the higher rate and complying with the KYC requirements but will soon shift to smaller lockers”; four per cent of those surveyed indicated that they have “been paying the higher rate and complying with the KYC requirement but will soon shut the locker”; 36 per cent of respondents shared that they “have been paying the new rate and complying with the KYC requirements and will continue to do so”; and another 8 per cent of respondent are undecided on the issue. In sum, troubled by the increased KYC requirements and a sizable increase in bank locker charges; 56 per cent of locker holders have either already shut it or are planning to shut or shift to a smaller size more affordable locker soon.
As per the new rule, revised locker agreements will have to be signed and submitted by account holders to their bank branch if they have signed it on or before 31 December 2022, under the new Reserve Bank of India (RBI) rules that will come into effect at the end of this calendar year.
The new rules for the bank safe deposit lockers, with regards to banks’ responsibility and the locker users, have been framed with several modifications by the RBI by the Supreme Court order in 2021 asking it to redefine the responsibilities and liabilities of banks and their locker users.
Initially, the new rules, wherein the bank's responsibility for the content and safekeeping has been redefined, were slated to come into force by 1 January 2022, but were put off for a year and now with further modification will come into force on December 31 this year.
As per the report, with many banks regularly calling locker holders to visit the branch with necessary KYC documents to sign paperwork and with many of them increasing locker charges in recent years, LocalCircles has been receiving posts and comments from locker holders indicating their grievances. In some cases, the locker holder is an NRI and simply unable to sign the agreement by the deadline and has demanded that an electronic way be there for signing the new locker agreement.
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