Will your bank locker get frozen if you don’t sign revised agreement by December 31?

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Revised Agreement Deadline:  The Reserve Bank of India (RBI) has mandated that all bank locker holders sign a revised bank locker agreement by December 31, 2023.

Assistance for Agreement Execution: Banks are required to assist locker holders in executing fresh or supplementary stamped agreements, providing various options like stamp papers, electronic execution, and e-stamping. The executed agreement copy must be given to the customer.

Address or Contact Change: Locker holders must inform the bank promptly with supporting documents if there is a change in address or contact details.

Circular Extension: Initially set for January 1, 2023, the RBI extended the deadline to December 31, 2023, considering challenges faced by customers and banks in executing the revised agreements.

Frozen Locker Repercussions: Lockers were initially frozen for non-execution of agreements by January 1, 2023. However, the RBI instructed banks to immediately unfreeze such lockers and facilitate agreement execution.

Inoperative Locker Handling: If a locker remains unattended for seven years and the locker holder cannot be found, the bank may transfer contents to nominees, legal heirs, or transparently dispose of articles.

Term Deposits for Locker: Banks may demand a Term Deposit during allocation, covering three years' rent and associated costs for opening the locker if the Locker-hirer fails to pay. Exceptions apply for certain customer categories.

SBI Website Criteria: The State Bank of India (SBI) website outlines criteria exempting existing locker hirers from Term Deposits, provided they meet conditions like KYC compliance, maintaining active accounts, and not being inoperative.

Exemption Categories: Certain customer categories, including Salary Package, HNI, Wealth, and VIP customers, are exempt from providing Term Deposits for bank lockers.

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