Bank lockers are often used to store valuables such as cash, important documents, and jewelry, providing a sense of security to individuals.
However, a recent incident highlighted by a content creator raises concerns about it Protection of such items. In this case, ₹ 18 lakh cash stored in a bank locker by a woman in Uttar Pradesh’s Moradabad was destroyed by termites in 2023, raising questions about the reliability of lockers to keep valuables safe and the policies adopted by banks for compensation. . “That lady was not reimbursed even a penny (The woman did not get a single penny as compensation),” notes Vijay Nihalchandani.
According to a report by business today“The woman kept money in a locker along with some jewelery for her daughter’s marriage in October 2022.”
Although we often believe that bank lockers offer a foolproof solution for storing valuable assets, the risks may not be as obvious as we think. We explore what you need to know before choosing a bank locker to store your valuables and whether banks offer compensation if your belongings are damaged or destroyed while in their care.
Risks associated with storing cash, documents, and jewelry in bank lockers
Snehashish Das, quantitative analyst at Solvay Brussels School of Economics and Management, tells indianexpress.com, “Bank lockers A safe option for storing valuablesBut they are not without risk. Understanding these risks and taking proactive steps can help protect your belongings. “
Das says environmental factors, such as high humidity or pest infestations such as termites, can cause major damage to cash and documents. Additionally, natural disasters such as floods or earthquakes can cause water or structural damage. While theft or robbery is relatively rare, sophisticated burglary attempts can still target bank lockers. Another risk involves bank liability limits, as banks generally have limited liability for locker contents, which may not cover all damages or losses.
If external factors damage items in a bank locker, is the bank legally obligated to provide compensation?
Das explains, “The legal liability of banks to compensate for damage to locker contents depends on the circumstances and regulations. As per Reserve Bank of India (RBI) guidelines released in 2022, banks are responsible for ensuring safety and security of lockers. Banks should compensate customers up to 100 times the annual rent of lockers if locker contents are lost or damaged due to incidents like theft, fire, building collapse or employee fraud.”
“For damage caused by natural calamities (eg, floods or earthquakes), banks are not liable if adequate security precautions have been taken. Banks are not liable for damage caused by customer’s negligence, such as improper packaging of cash or documents that cause termite damage,” Das noted.
Store cash and documents in sealed, waterproof bags to prevent damage from moisture or insects. (Source: Freepik)
How do banks ensure security and maintenance of their lockers?
Banks implement strict security measures and maintenance practices to protect lockers, but vulnerabilities can still occur. “Physical security measures include vaults made of reinforced steel, placed in secure areas with limited access, and monitored by CCTV and advanced. Alarm systems. Access protocols, such as dual-key systems that require the presence of both the bank and the customer to open the locker, and detailed logs of locker access further enhance security. High-quality lockers are also designed to withstand moisture and insects, with regular pest control measures in place to prevent infestation,” explains Das.
Individuals should take precautions when storing valuables in bank lockers
To ensure your valuables remain safe and intact, take the following precautions when using a bank locker.
Protective Storage: Store cash and documents in sealed, waterproof bags to prevent damage from moisture or insects. Use fireproof pouches or containers for sensitive documents and currency.
Don’t store cash late: Instead of storing cash, opt for bank deposits or fixed deposits that earn interest and are less susceptible to losses.
Inventory Management: Keep a detailed list of items stored in the locker with photos to simplify insurance claims if necessary.
Regular inspection: Visit the bank periodically to inspect the condition of stored items and ensure there is no environmental damage.
Insurance Coverage: Purchase a comprehensive insurance policy for high-value items stored in lockers to ensure financial protection against unexpected damages.
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