The seal of the Reserve Bank of India (RBI) is pictured on a door outside the RBI headquarters in Mumbai. | photo credit: Reuters

On January 23, 2023, the RBI extended the deadline until the end of December for banks to enter into revised agreements with vault holders, as a large number of customers have yet to do so.

In August 2021, the Reserve Bank of India (RBI) had requested banks to enter into revised agreements with existing locker holders by January 1, 2023 in view of various developments in banking and technology, the nature of consumer grievances and also from the Feedback received.

“However, RBI has learned that a large number of customers have yet to sign the revised agreement.

“In many cases, banks have not yet informed customers of the need to do so before the stipulated date (January 1, 2023),” the central bank said in a statement while extending the deadline for banks to complete the renewal process. agreements for existing safes in a phased manner by December 31, 2023.

Banks have been asked to notify all their customers of the revised requirements by April 30, 2023 and to ensure that at least 50% and 75% of their existing customers have signed the revised agreements by June 30 and on September 30, 2023, respectively.

Banks should also facilitate the execution of fee/additional stamped agreements with their customers by taking steps such as arranging paper stamps, electronically executing the agreement, electronically stamping and providing a copy of the signed agreement to the client.

The RBI also said that in cases where locker operations have been frozen for non-execution of the agreement by January 1, 2023, “the same will be unfrozen with immediate effect.”

The August 2021 guidelines cover customer due diligence, model locker agreement, locker rental, vault security, and seizure and recovery of contents of a locker and articles by any law enforcement authority, among others.

The RBI further stated that there is a need to revise the model agreement drafted by the Association of Indian Banks (IBA) to fully comply with the revised instructions.

“IBA is advised to separately review and revise the model agreement to ensure that it complies with the requirements of the circular dated August 18, 2021 and to circulate a revised version to all banks by on February 28, 2023,” he said in a circular.