New Bank Locker Agreement: All You Need To Know

The requirement that every safe deposit vault holder now needs to sign a new and modified rent agreement with the bank has thrown up a new challenge for locker holders.

Completing this requirement is a difficult task as all the account holders have to come together and then sign the new agreement. This has to be done physically, so it is also not possible to do this online.

The relief in the matter is that the earlier deadline of completing the entire process before Jan. 1, 2023 has been extended, so there is time still available and your bank locker won't be frozen.

One important component in this entire part is the agreement and the stamp paper on which this has to be executed. It is creating a lot of confusion for the customers and hence, here is a look at this aspect in detail.

The safe deposit locker agreement needs to be executed in a proper and legal manner. This will involve having it typed out where all the conditions are listed out. Banks have a standard agreement form where all the details that need to be included under the new Reserve Bank of India guidelines are mentioned.

If the locker holder is executing this on a stamp paper, then a blank stamp paper has to be obtained and the details typed on it. The other and more easier alternative is to have franking done on the standard agreement form that is ready with the bank. Ultimately, this means the same thing as executing it on a stamp paper as the necessary amount is displayed on the agreement after the franking is complete. Either of the options, which are easier to follow, can be used for the purpose.

The amount of the stamp paper to be used or the franking to be done might not be the same across different states. The figure is determined by the local stamp duty act that is prevailing in each state and hence, the figure here that is applicable for the locker present in a specific state has to be followed. This is also the reason why one needs to go to the bank branch and then check the amount for which the stamp paper or franking needs to be done. This will save a lot of time and effort; otherwise, the wrong amount might be used.

The form first needs to be typed without being signed when it is taken for franking. This is the most important aspect because the final and complete details should not be filled in before it is franked. The details and the signature has to be done after and only then will the agreement be valid. The signature has to be done by the locker holders before the bank official and this is why the physical presence of the locker holder is required. This is a tough task, especially when the locker holder is not in the same city where they live or some of them are abroad.

There is no standard procedure that is followed by all the banks in the whole matter, so the locker holder has to be ready for some uncertainty when it comes to what they need to do.

Some of the banks ask the investor to get the franking done at their cost and hence, this process has to be completed by the customer. On the other hand, some other banks have the agreement ready with the stamp paper or franking and hence, all that the investor needs to do is sign on the new agreement.

In addition, some of the banks also ask for a new set of Know Your Client (KYC) documents and photos. The locker holders need to be prepared for this and complete the process.

Arnav Pandya is founder of Moneyeduschool.

The views expressed here are those of the author, and do not necessarily represent the views of BQ Prime or its editorial team.