Things you must know if you are thinking of getting a bank locker.

Mint

2 days ago

MUMBAI
:
For many Indians, bank lockers, once the silent sentinels of family gold and property documents, represent not just a place to store valuables but also peace of mind. However, the process of getting one—and what happens afterwards—isn't always as straightforward as it seems.
'Jewellery is the obvious item people think of," said Adhil Shetty, chief executive of BankBazaar. 'But more people are now storing important documents, especially after facing losses in floods or house fires."
Bank lockers are designed to provide protection against theft and environmental damage. But in metro cities, demand far exceeds supply, making lockers a scarce and highly coveted service.
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To rent a locker, a customer must complete full KYC (know your customer) documentation—the same as opening a bank account. Existing customers may have a faster process, while new customers must undergo more comprehensive checks. Locker allotment isn't automatic; banks are required to maintain a transparent waitlist and provide an acknowledgement with a reference number.
Locker rentals are annual, and charges vary depending on the size and location of a locker. 'In most banks, small lockers can cost between ₹1,500 and ₹3,000 annually, while larger ones can go up to ₹10,000 or more," said Shetty.
Some banks may require customers to open a fixed deposit as security, capped by the Reserve Bank of India at no more than three years' rent plus break-open charges.
'Even if you want to use the locker for a few months, you still pay the full annual fee," noted Abhijit Nair, a cost engineer from Nashik, who recently went through the process.
The RBI mandates that banks execute a formal locker agreement on stamped paper. However, customers often face confusion over stamp duty and who pays it. In practice, different banks (and even branches) follow varying rules, leaving customers to navigate inconsistent and opaque processes.
For example, Nair was first asked to get a ₹100 stamp paper and then a ₹500 stamp paper.
Once assigned, access is granted only to the locker holder or a pre-authorized person. Each visit is logged with signatures and timestamps. 'At my bank, only one customer can be in the locker room at a time," Abhijit added. 'It's secure, but it can cause delays."
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Banks don't know what's inside your locker—and they're not supposed to. As per RBI rules, banks cannot be held responsible for the actual contents unless the loss occurs due to theft, burglary, fire, or staff negligence. Even then, the liability is capped at 100 times the annual locker rent. So, if your locker rent is ₹5,000, the compensation maxes out at ₹5 lakh.
'Since the bank doesn't know what you've stored, it's on you to get your valuables insured," explained Shetty.
What are the requirements?
When Nair tried to secure a locker closer to his parents' home in Nashik, he was asked to make a fixed deposit, even though he was already a preferred customer. Later in Bengaluru, things escalated. 'A private bank offered me a locker only if I bought a ₹2 lakh-a-year insurance product," he said. 'When I refused, they followed up multiple times, even reducing the premium to ₹1 lakh."
Kapil Marwah, a business analyst from Noida, had a similar experience. After being denied lockers repeatedly by private banks unless he bought high-premium insurance, he finally opted for a public sector bank. 'A state-run bank finally agreed to give me a locker after I bought a one-time insurance policy of ₹1.5 lakh for my wife," he said. 'It wasn't ideal, but after being stonewalled by six other banks, I was desperate."
Pune-based software professional Bhavik Shah never expected that getting a bank locker—something that should be a routine banking service—would turn into a year-long ordeal involving three branches and multiple follow-ups. Despite this, most banks either cited 'long waiting lists" or promised to call back but never did, Shah recalled.
When Shah visited a newly opened branch on its opening day, he was still told that lockers were already allotted. 'I was told that if I deposited ₹5-10 lakh, my waiting status could be bypassed. The more you deposit, the faster things move," he said.
'Banks are clearly using locker scarcity as a pressure tactic. It's become a sales funnel disguised as customer service," he claimed.
'Any such practice can be reported directly to the bank's grievance cell or escalated to the RBI's Banking Ombudsman," said Shetty. 'Customers have a right to a locker without being coerced into buying products. Banks are required to maintain a public list of available lockers and share waitlist numbers transparently," he added.
From a physical security perspective, bank lockers are robust. The RBI mandates CCTV surveillance—footage must be kept for 180 days—secure access control, fire-resistant vaults, and natural disaster readiness. But that doesn't mean lockers are invincible.
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'Losing the key is a nightmare," said Nair. 'You have to pay break-open charges, and you must be physically present during the process."
If a locker is unused or uncontactable for seven years, the bank has the right to break it open and dispose of the contents after following strict procedures.
Customers are encouraged to nominate someone for easier succession. In case of the holder's death, lockers are released to the nominee or legal heirs within 15 days, assuming proper documents are submitted.