RBI extends time for renewal of agreements for existing Safe Deposit Locker/Safe Custody Article Facility Provided by Banks.
In a circular dated August 18, 2021, the Reserve Bank of India published updated guidelines for the safe deposit box/safe custody article facility, requiring banks to sign into updated contracts with current locker holders by January 1, 2023, among other things. However, a significant portion of consumers have yet to sign the amended agreement, which has come to RBI’s attention. Many times, banks have not yet informed clients that they must take certain actions before the deadline (January 1, 2023).
In light of this, it has been decided to extend the date by which banks must gradually complete the process of renewing their contracts for current safe deposit boxes by December 31, 2023, with intermediate goals of 50% by June 30, 2023, and 75% by September 30, 2023. Additionally, banks have been urged to make the required preparations to make it easier for the updated agreements to be executed by ensuring that stamp papers and other materials are readily available.
Additionally, operations in lockers that have been frozen due to non-execution of an agreement by January 1, 2023, shall be immediately unfrozen.
Necessary instructions in this regard have been issued to the banks (link to Circular of January 23, 2023).