Locker agreement from 1st January 2022 – agreement on line through websites and apps of bank will be the best way and save time and costs of all concerned and will be environment and health friendly.

[DEV KUMAR KOTHARI]

Locker agreement from 1st January 2022 – agreement on line through websites and apps of bank will be the best way and save time and  costs of all concerned and will be  environment and health friendly.

As per RBI circular  no  RBI/2021-2022/86  DOR.LEG.REC/40/09.07.005/2021-22  dt.. August 18, 2021 available on

https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12146&Mode=0  Revised Instructions for Safe Deposit Locker/Safe Custody Article Facility provided by the banks were issued to:

All Scheduled Commercial Banks (including RRBs)
All Co-operative Banks
All Small Finance Banks
All Payments Banks
All Local Area Banks

Safe Deposit Locker/Safe Custody Article Facility provided by the banks - Revised Instructions

RBI/2021-2022/86
DOR.LEG.REC/40/09.07.005/2021-22

August 18, 2021

According to this

The banks are advised to frame their own Board approved policy/ operational guidelines in this regard taking into account the revised instructions.

The revised instructions shall come into force with effect from January 1, 2022 (except where otherwise specified) and be applicable to both new and existing safe deposit lockers and the safe custody of articles facility with the banks.

However , there have been delays on part of banks. Many of locker holders have received call, SMS very recently and many have no such intimation to execute agreement. Now banks have been given last date as 31.01.2023.

As per news reports and grapevine and feedback from known people,  in Kolkata:

Some banks are asking locker holder to purchase stamp paper for agreement in name of Bank and branch and appear / attend bank for execution of contract as per format the branch will provide.

The important question is how any person from  general public can purchase and vendor can sell such stamp paper in name of bank? In any case why banks are asking customers to do so?

As per general rules, a stamp paper can be  / and should preferably be purchased by any  person  in his name who is a party to agreement. In many cases even stamp papers can be purchased in name of karta of HUF, Director of company, and partner of firm, advocates, agents etc.

There should not be a question if a locker holder purchases a stamp paper in his name.

Information technology can be used for ease of doing business:

On line agreement and stamp duty payment can be arranged easily by banks on their own websites and Apps.

This will be very convenient for all.

This will also reduce use of paper and will thus be environment friendly.

Physical documentation:

Better course would be that bank purchases stamp paper, in case of physical documentation, prepare agreement with all fill ins as per KYC information they have or can get updated beforehand. In fact bank should not allow anyone to purchase stamp paper in banks name

Standard terms and conditions may be applied and referred in the agreement. The agreement can incorporate other information relating to account holder like name, address, description etc. ,  bank branch holders. locker number, period of agreement and rate of rent etc. Other terms and conditions can be as per Performa agreement.

 Difficulties in personal attendance:

Locker holders as well as banks will have difficulties if account holder / locker holder has to visit bank branch. Therefore, author advised to write to banks and some of banks have responded to provide documentation through authorized representative.

A draft letter is this regard is appended below , this can be suitably modified as per case:

The Manager, ...   Bank    ,                         ... Branch

Reg: Locker agreement - Locker no    Saving account no

Sir,

kindly send to us  new form  of agreement  by email, for execution for locker.

On line agreement: we suggest to provide online agreement facility for ease of doing work, to reduce un-necessary footfall and crowd at branches of bank.

ITES can be easily used as bank has website and Apps both. These can be added with feature for online execution of agreement.

We both are senior citizens, and it is better to avoid visit to bank for our health and health hazards of bank officers, and others at bank. We believe that stamp paper can be in name account/ locker holder, as a party to agreement.

Stamp paper in name of bank:  If stamp paper is to be in name of Bank, then stamp paper must be purchased by bank, because stamp vendor can refuse (rather must refuse)  to give it to any other party in name of bank. In any case bank must not promote practice that allow anyone to purchase stamp paper in name of bank.  Only authorized officers of bank must be able to purchase stamp paper in name of bank. In case of net banking, even stamp duty can be paid online as is being done in many transactions.

Bank branches are insisting to locker holder to bring stamp paper in name and address of branch and accordingly we purchased one although earlier we had purchased a stamp paper in account holders name for this purpose.

Visit of so many locker holders can be avoided, if duly executed, (by locker holder) agreement is sent to bank by speed post or through messenger  for further processing.

Most of  banking transactions are honored based on specimen   signature of account holder and  / or his authoresses signatories.  Only in case of a doubt about genuineness of signature  or some other reasons the Bank manager can call account holder, that too to protect the  interest of account holder and not simply to harass account holder.

We hope our suggestions shall be taken in right spirit and implemented as soon as possible.

Locker holders

In response to letters some bank branches have responded and agreed to provide agreement through authorized representative for execution and return to the bank.

In this regard letter can be given as follows:

From Locker holder – name, address etc. as per bank recorded KYC

To,

 The Manager,             Bank         , Branch

Sir,

Sub: Agreement for Locker –  Saving Account no.       Locker no.  .

We  have bank and  Locker facility as detailed  above in your branch.  Our account if KYC compliant.

 As per telephonic discussion, please provide locker agreement for our execution and return.

We authorise Mr. ......  to  receive  it on our behalf.

A non-judicial stamp paper bearing no     is attached herewith. / we understand that stamp paper will be provided by you. / Charges, may be levied in our account.  (Strike or delete   NA )

                                       /-

Signature of Mr. .....   is as above .

   Thanks for your co-operation,

Account holders.