Last updated: January 23, 2023, 7:17 PM IST
The Reserve Bank of India had asked the banks in August 2021 to enter into revised agreements with the existing locker holders by January 1, 2023.
RBI says it has noticed that a large number of customers have yet to sign the revised agreement
The Reserve Bank of India (RBI) on Monday extended the deadline to the end of December for banks to enter into revised agreements with safety deposit box holders as a large number of clients have yet to do so. In August 2021, the Reserve Bank of India (RBI) had asked banks to enter into revised agreements with the existing locker holders no later than January 1, 2023, given various developments in banking and technology, nature of consumer grievances and also the feedback received.
“However, RBI has noted that a significant number of customers have yet to sign the revised agreement. In many cases, the banks have yet to inform customers of the need to do so before the set date (January 1, 2023),” the central bank said in a statement, extending the deadline for banks to complete the extension process of agreements for the existing safe deposit boxes phased in 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 percent and 75 percent of their existing customers have implemented the revised agreements by June 30 and September 30, 2023 respectively .
Banks should also facilitate the execution of the new/additional stamped agreements with their clients by taking measures such as arranging stamp papers, electronic agreement execution, e-stamping and providing a copy of the executed agreement to the client.
The RBI also said that in cases where safe deposit box operations have been frozen due to non-performance of the agreement by January 1, 2023, “the same will be unfrozen with immediate effect”.
The August 2021 guidelines include customer due diligence, locker agreement model, locker rental, locker room security, and seizure and retrieval of locker contents and items by a law enforcement agency.
The RBI further said that there is a need to revise the model agreement prepared by the Indian Banks’ Association (IBA) to fully comply with the revised instructions.
“IBA is separately advised to review and revise the Model Agreement to ensure it meets the requirements of the August 18, 2021 Circular and to distribute a revised version to all banks by February 28, 2023,” it said in a statement. circular.
(With input from PTI)
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