RBI Guidelines: Banks Are Not Responsible For the Contents of The Lockers..!

According to the Reserve Bank of India (RBI) guidelines, banks are not responsible for the contents of the lockers.

A bank only needs to provide for protection of the lockers.

According to Mr. Narayan Raja, CEO, Banking Code and Standard Board of India (BCSBI), ''The relationship between the bank & the locker customer is that of a lessor & a lessee. Since the contents of the locker are never shared with the bank, it is not responsible for the contents.

 According to Section 152 of the Indian Contract Act, a bank is not responsible for any loss or  / damage to the contents of a locker. Even the valuables deposited in lockers are not insured.

A bank does not have the ownership or / knowledge of the contents of the locker and hence does not have any insurable interest in the matter.The law clearly appears loaded against the customer in this case.

The customer is not only required to prove that the locker was robbed but also submit evidence of the extent of the loss. But, customers can claim some compensation if they can prove that the loss or / damage happened due to negligence on part of the bank.

According to Mr. Mumbaibased, Advocate, VT Gokhale, "If the negligence by the bank is proved, or / a bank employee was involved (in the theft), it becomes a vicarious liability and the bank is liable to pay compensation. But the compensation may not cover the full loss. In one case decided by the banking ombudsman, it was established that the locker had been broken into."

Src: ET

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