Explain the procedure of opening Safe deposit vault.
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Answer:
Safe Deposit Vault or Safe Deposit Lockers are the facilities provided by banks to their customers to keep their valuables.
This facility is not offered through all bank branches and wherever the facility is offered, allotment of safe deposit vault will be subject to availability and compliance with other terms and conditions related to this service. Safe deposit lockers may be hired by an individual (a non-minor) singly or jointly with another individual(s), HUFs, firms, limited companies, associates, societies, trusts etc. Nomination facility is available to individual(s) holding the lockers singly or jointly. In respect of lockers held in joint names, up to two nominees can be appointed. Joint locker holders can give mandate for access to the lockers in the event of death of one of the holders which is in similar lines to those for deposit accounts. In the absence of nomination or mandate for disposal of contents of lockers, with a view to avoid hardship to common persons, the bank will release the contents of locker to the legal heirs against indemnity on the lines as applicable to deposit accounts.
Lockers / Return of Safe Custody Articles by banks.
The Committee on Procedures and Performance Audit on Public Services (CPPAPS) had made some recommendations for easy operation of lockers. Banks have been advised by RBI to adhere to the following guidelines with respect to issue and maintenance of Safe Deposit Lockers.
Linking of Allotment of Lockers to placement of Fixed Deposits
RBI has advised banks to refrain from such restrictive practices such as linking the lockers facility with keeping fixed or any other deposit beyond what is specifically permitted.
Fixed Deposit as Security for Lockers
Banks may face situations where the locker-hirer neither operates the locker nor pays rent. To ensure prompt payment of locker rent, banks may at the time of allotment, obtain a Fixed Deposit, which would cover 3 years rent and the charges for breaking open, the locker in case of an eventuality. However, banks should not insist on such Fixed Deposit from the existing locker-hirers.
Wait List of Lockers
Branches should maintain a wait list for the purpose of allotment of lockers and ensure transparency in allotment of lockers. All applications received for allotment of locker should be acknowledged and given a wait list number. Banks are also advised to give a copy of the agreement regarding operation of the locker to the locker-hirer at the time of allotment of the locker.
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