RBI extends time for banks to complete renewal of safe deposit locker agreements

The Reserve Bank of India on Monday extended the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers till December 31, 2023.

The RBI has set intermediate milestones of 50 percent by June 30, 2023, and 75 percent by September 30, 2023 for banks to complete the process.

In a statement, the RBI stated, "Its circular dated August 18, 2021 had issued revised instructions with respect to Safe Deposit Locker/Safe Custody Article Facility that inter alia required banks to enter into revised agreements with the existing locker holders by January 1, 2023. However, it has come to the notice of RBI that a large number of customers are yet to sign the revised agreement. In many cases, the banks are yet to inform the customers about the need to do so before the stipulated date (January 1, 2023)."

In accordance, the RBI said that the banks have been advised to make necessary arrangements to facilitate the execution of the revised agreements by ensuring the availability of stamp papers, etc.

Further, in cases where operations in lockers have been frozen for non-execution of agreement by January 1, 2023, the same shall be unfrozen with immediate effect, it added.