By December 31, 2023, banks are required by the Reserve Bank of India (RBI) to obtain signatures from every locker holder on an updated bank locker agreement.The RBI had requested that banks help their clients sign new or additional stamped agreements with their clients by taking steps like setting up stamp papers, electronically executing agreements, e-stamping, etc. and giving the client a copy of the executed agreement.It should be noted that the locker renter must notify the bank right away with accompanying documentation if their address or contact details change.
“Banks were required to renew their locker agreements with existing locker customers by January 1, 2023,” reads the RBI circular dated January 23, 2023. The Reserve Bank has noticed, meanwhile, that many of its customers have not yet executed the amended agreement and are having trouble doing so. Many times, banks have not yet notified their clients that their agreements must be renewed by January 1, 2023. In order to completely comply with the amended instructions, the Indian Banks’ Association (IBA) model agreement needs to be revised. In light of the aforementioned factors, banks will now have until December 31, 2023 to meet the deadline, which will be extended gradually.
It is recommended that banks inform all of their clients about the updated specifications by April 30, 2023, and make sure that by June 30 and September 30, 2023, respectively, at least 50% and 75% of their current clientele have signed the updated contracts.
How many people who own lockers have signed updated contracts?
10% to 20% of clients still need to complete the formality, according to banks, as reported in a Times of India news report. According to Indian Bank and Punjab National Bank, digital locker agreements are now available for completion via e-sign and e-stamp. Nevertheless, there have been problems with the online facility’s accessibility.
Eighty percent of the customers had completed the new locker arrangement, according to a Union Bank representative. As of yet, the bank has not implemented any digital execution of the contract. Compared to Bank of Baroda, which had 81% of its customers sign the amended locker agreement, Canara Bank reported that almost 90% of its customers had done so. According to bankers, a large number of the agreements that haven’t been updated are ones that aren’t used very often and others that are even in elderly folks’ names. Banks are offering to come see the elderly to sign documents.
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Will (Reserve Bank of India) locker be frozen if revised agreement is not signed?
The amended locker agreement was originally due to be signed by December 31, 2022. On the other hand, the RBI stated that it had notified the deadline for signing amended agreements since it had observed that many clients had not yet done so. In numerous instances, the banks have not yet notified its patrons of the requirement to do so prior to the deadline of January 1, 2023, in order to engage into updated agreements with current locker holders.
RBI stated in a circular dated January 23, 2023 that lockers that had been closed as a result of an agreement not being carried out by the previous deadline of January 1, 2023, should be unfrozen right away.
As stated in the RBI circular dated January 23, 2023, “Banks are advised to take measures such as arranging stamp papers, franking, electronic execution of agreement, e-stamping, etc. and provide a copy of the executed agreement to the customer in order to facilitate execution of the fresh/supplementary stamped agreements with their customers.” If locker operations have been suspended due to non-compliance with the agreement by January 1, 2023, they must be reopened immediately.
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