Business Line
 
Mumbai, Dec 5: Banks can now break open safe deposit lockers if the hirer does not pay the rent, says a draft RBI circular. Lockers will have to be opened at least once a year, if the profile of the customer is considered high-risk going by the `Know Your Customer' norms.

Reacting to a recent incident where explosives and weapons were found in the locker of a bank, the RBI has advised banks to contact `medium' and `high risk' customers if they have not opened their lockers in one and three years, respectively.

They will be given the option to operate or surrender them.

"In case the locker-hirers still do not operate the lockers, banks should consider opening the lockers with the help of the police after giving due notice to the locker-hirers," said the RBI.

The RBI has also told banks that linking the locker facility with placement of fixed or any other deposit beyond what is prescribed is a restrictive practice and should be prohibited.

The Committee on Procedures and Performance Audit of Public Services has not taken kindly to the habit. If the locker hirer has a fixed deposit with the bank, it can be earmarked for an amount so that the interest covers the rental as an alternative to collecting the annual locker rental in advance.

In case of the death of a locker hirer, access to the nominee or the joint hirer can now be given by submission of a death certificate and identification papers. If there is an `either or survivor' clause and the locker is not to be operated jointly, access may be given only to the survivor in case of the death of one of the hirers.

Death of hirer

In case of the death of a locker-hirer, where there is no nomination but a valid will, access may now be given to the executor. In other cases, access will be given to the legal representative of the deceased.

While permitting the removal of the contents of any lockers by a nominee or a legal heir, banks have been asked to create an inventory of the contents, which is to be signed by the new hirer. Banks cannot, however, open sealed packets left with them for safe custody or found in the locker.

The central bank has told banks that lockers, which do not have a nomination clause should obtain the option within a year.