Hire Bank locker, its benefits and disadvantages
Updated Bank Locker Rules, Hire a Bank Locker, detailed information
Bank Locker: In order to safeguard our precious items, we use to do many things, one of which is hiring a locker on rent in banks. Many of us have hired lockers in banks, which is said to be the safest way to keep your precious items, important documents and other costly things. These are supposed to be safer than a home with all the multiple layers of securities and surveillance they provide. We will see the importance of a bank locker and how to hire a bank locker in this article.
Who can hire a locker?
Customers who do not have a relationship with a bank can hire a safe deposit locker/safe custody article after complying Know Your Customer (KYC) Directions. The hirer must sign a locker agreement, agreeing to abide by the bank’s terms and conditions.
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What is the rent of a locker in the bank?
Almost every bank is providing a locker in their premises at a very minimal rate. Bank locker charges vary from Rs. 1000 to Rs. 10,000, depending on the size of the locker and the city. For small, medium, large and extra large size lockers, the bank charges Rs. 1500 – Rs. 2,000, Rs. 2500 – Rs 4,000, Rs. 3500- Rs. 8,000, and Rs. 6000 – Rs. 12,000 respectively, however it differs from bank to bank and as per area type.
What are the formalities to hire a bank locker?
There are very few requirements to hire a locker in a bank. I have mentioned these here-
- KYC (Identity an address proof)
- Recent Photograph
- Bank Account (to pay the locker rent)
- Fixed Deposit Equivalent to 3 to 4 years of locker rent.
- Application to hire a locker (Generally provided by bank)
What I can keep in a bank locker and how safe is that?
You can keep anything you want to. This may be cash, gold, ornaments, important documents and other precious items. The lockers are generally very safe and there is no leakage in security of items. Generally there is no check from the bank side, on what is kept in the locker, unless there is no legal requirement to do that.
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Benefits and disadvantages of hiring a locker in bank
Benefits:
- Safest place to keep your valuable articles
- Easy to manage
- Minimal rental (as charged yearly)
- No legal worries
Disadvantages:
- Not available to access any time
- Carrying items to keep in locker and taking away is sometimes risky
- Locker Key (Key should be kept very safely and carefully as in case of missing a key you may have to bear penalties and charges towards changing a locker)
- If you miss to pay rent for any year you have to pay an excess amount other than rent for the year as penalty.
What happens in case of theft in a locker or bank?
However, the locker owners were not compensated for those losses. To remedy this, the Reserve Bank of India has recently announced a new rule that allows locker holders to claim compensation up to 100 times the annual locker rent if the holdings are lost due to theft, fire, bank fraud etc.
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What if I don’t operate a locker for a long period like 1 year or more?
Operating a locker once a year is a must, which also certifies that the hirer is aware of having a locker in the bank. If you do not operate a locker for a longer period then the bank will send you an intimation notice to operate the locker as soon as possible, even if you do not operate the locker bank after giving you required notices, may break the locker and keep the belongings with them in safe custody. If you are in reach of the bank, they will contact you and handover the belongings after penalizing for locker arrear and break opening charges. However if you are not in bank reach, the bank has discretion to auction things found in the locker after break opening after serving you required notices and recover the charges of break opening.
After completion of this process, the locker will be available to the next customer for hiring and you can not claim for the belongings and locker.
To conclude, It is always a better option to hire a locker in a bank to keep your valuable article safe. Bank lockers are safer than houses and other places. There are many layers of security in banks which provides you stress free safety of your items.
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