The Reserve Bank of India (RBI) has extended the deadline till December-end for banks to enter into revised agreements with safe deposit locker holders.

As a large number of customers have not been able to rush in to execute new locker agreements with their banks, the RBI decided to give more time.

The central bank on Monday notified that the completion of the process for renewal of agreements be carried out in a phased manner by 31 December this year. 

Banks have been asked to notify all their customers of the revised requirements by April 30, 2023, and ensure that at least 50% and 75% of their existing customers have executed the revised agreements by June 30 and September 30, 2023, respectively. 

Banks also have to facilitate execution of the revised agreements by ensuring the availability of stamp papers. They have to take measures such as arranging electronic execution of the agreement, e-stamping and providing a copy of the executed agreement to the customer.

The RBI also said 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”.

In August 2021, the RBI had asked banks to enter into revised agreements with the existing locker holders by January 1, 2023 in view of various developments in the area of banking and technology, nature of consumer grievances and also the feedback received.

“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)," the RBI said.

The August 2021 guidelines pertain to customer due diligence, model locker agreement, locker rent, security of strong rooms, and attachment and recovery of contents in a locker and the articles by any law enforcement authority, among others.

The RBI further said there is a need for revision in the Model Agreement drafted by the Indian Banks’ Association (IBA) to fully comply with the revised instructions.

“IBA is being advised separately to review and revise the Model Agreement to ensure that it complies with the requirements of circular dated August 18, 2021 and circulate a revised version to all banks by February 28, 2023,” it said in a circular.