The shocking robbery at the Indian Overseas Bank's Chinhat branch in Lucknow has left everyone bewildered. Thieves broke open 42 lockers and made off with the belongings. Swift police action led to the encounter of two robbers, while three were arrested. However, heart-wrenching videos of tearful victims who lost their valuables in lockers are going viral on social media. This incident has sparked concerns about the security of lockers promised by banks and forced people to question what rules are in place to protect customer interests in such events. What guarantees are there for the jewelry stored in bank lockers?
42 Out of 90 Lockers Looted
Let’s first address the situation: Out of 90 lockers, 42 at the Indian Overseas Bank's Chinhat (located at Matiyari intersection) branch were broken into by thieves. The robbery happened early on Monday, December 23, through a 2.5-foot hole cut into the bank's wall. According to Deputy Commissioner of Police (East Region) Shashank Singh, the robbery was conducted by a gang of seven members, two of whom were killed in an encounter, and three were apprehended.
Source: aajtak
Meanwhile, the bank issued a statement claiming that despite adequate security measures, the incident occurred, but they are committed to safeguarding their customers' interests. The bank assured that they are actively engaged with affected customers to alleviate their concerns and provide necessary assistance. They have insurance coverage for such incidents, and the safety of their customers and their assets remains their top priority.
Questions Arise Over Locker Security
Belongings are safer in a bank locker than at home with a threat present. With this mindset, people store precious items, especially jewelry, in bank lockers. Following such incidents and distressing videos of customers, doubts over their security arise about the actual safety of bank lockers. Therefore, it’s crucial to understand the regulations related to bank lockers before depositing valuable items. Do banks guarantee items stored in lockers? If deposited items are stolen, what happens?
RBI's Locker Regulations
In August 2022, the Reserve Bank introduced new safe deposit locker regulations. Under these rules, banks were mandated to revise agreements with existing locker holders by January 2023. These rules have been effective for new customers since January 2022. Most importantly, banks can no longer deny compensation by referencing terms, ensuring full reimbursement for customer losses.
Source: aajtak
Bank Accountability Highlighted
The revised RBI regulations emphasize that banks must ensure that no unfair condition in the locker agreement allows them to evade responsibility when customers face losses. This revision aims to counter scenarios where banks attempt to shirk liabilities by citing agreement terms.
According to RBI's rules, negligence by the bank resulting in locker contents' damage obligates the bank to compensate. Banks must ensure adequate security measures, including for premises housing lockers. The bank bears responsibility to prevent damage from fires, thefts, robberies, or building collapses due to its own shortcomings, negligence, or omissions.
Source: aajtak
When Do Locker Users Face Loss?
According to RBI's new rules on lockers, banks will be fully accountable for losses due to fires, thefts, robberies, or building collapses, obliging banks to compensate. The rationale is that banks have control over preventing such incidents. However, for damages caused by natural disasters like earthquakes or floods, banks bear no responsibility, leaving customers to absorb the complete loss.
Conditions for Customer Compensation
There's a proviso regarding compensation. A bank's liability extends up to 100 times the annual locker rent, suggesting customers avoid storing items worth more than 100 times the annual rental fee. For example, with an annual rent of ₹1000, if items are lost, the customer would receive compensation capped at ₹1 lakh.
