Three Reasons Why Bank Locker Becomes Inoperational And Here's How To Avoid It

There are times when the access to the bank locker becomes an essential requirement for an Indian family.

Specific occasions, including weddings, require that some valuables that are kept in the locker need to be used and at these times, the locker has to be operational.

The easy access to the locker becomes an important part of the process as it enables smooth completion of the entire activity. However, a situation can arise where the locker holder finds that they are not able to access the locker.

There are three main reasons why this would be the case and here are steps to tackle this.

One of the key things that every locker holder has to complete is the payment of the rent on the locker and to ensure that this is up to date. Different banks have different cycles for which they collect the rent, though most of this is usually done on an annual basis.

Earlier, several banks even used to collect rent for three years at one go. There are times when the rent would be outstanding on the locker and if this is the case, then the bank is likely to restrict access till the time that the rent has been cleared for the past dues or even for the current year.

This situation occurs when there is no direct debit to a savings account and the locker rent has to be paid separately, which is missed out. The best way to tackle this situation is to link it to a savings bank account and give instructions for the direct debit of the locker rent to the account.

There might be a situation, too, where the balance in the account might not be enough for the rent and hence, the transaction was not completed. In such a situation, ensuring that the savings account has the necessary balance and paying the rent would ensure that the access is restored to the locker.

There are new rules whereby every locker holder has to update their agreement with the bank for their lockers. There were several deadlines, with the latest one ended on Dec. 31, 2023. If the new agreement has not been signed, then the chances are that the access could be denied till the time that the agreement is updated.

This is a tricky thing because updating the agreement will require the physical presence of all the locker holders in person at the time of the signing of the agreement. This might be difficult when there are either senior citizens who are joint holders or if there are holders who are abroad or out of town.

For those who cannot make it to the bank due to ill health or old age, the banks often facilitate their officials to go to the homes of the customers to collect the signatures. However, for those who are abroad, there is no choice but to ensure that they make a trip to India to complete the process.

Since the deadline has expired, it is likely that the access to the locker is restricted, which can be freed up only by updating the agreement.

There can also be a situation where the locker is not used for a very long period of time. This can also make it dormant, and the bank might put this on the watch list.

The time period for non-usage would need to be checked with each bank separately for this situation. This would lead to the locker holder having to complete some process when they access it after a long period of time.

This could possibly be completion of the know-your-client requirement and submission of various documents. Locker holders should ensure that the locker is accessed at regular intervals or within the period as per the rules of their bank to prevent this kind of situation.

The writer is the founder of Moneyeduschool.