RBI News Live Updates: The RBI prolonged the time until December-end for banks to enter into revised agreements with secure deposit locker holders as a lot of prospects are but to take action.

In August, 2021 the Reserve Bank of India (RBI) had requested banks to enter into revised agreements with the present locker holders by January 1, 2023 in view of varied developments within the space of banking and expertise, nature of client grievances and in addition the suggestions obtained.

“However, it has come to the notice of RBI that a large number of customers are yet to sign the revised agreement.

“In many instances, the banks are but to tell the shoppers concerning the want to take action earlier than the stipulated date (January 1, 2023),” the central bank said in a statement while extending the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner by December 31, 2023.

Banks have been asked to notify all their customers of the revised requirements by April 30, 2023 and ensure that at least 50 per cent and 75 per cent of their existing customers have executed the revised agreements by June 30 and September 30, 2023, respectively.

Banks also have to facilitate execution of the fresh/supplementary stamped agreements with their customers by taking measures such as arranging stamp papers, electronic execution of agreement, e-stamping, and providing a copy of the executed agreement to the customer.

The RBI also said in cases where operations in lockers have been frozen for non-execution of agreement by January 1, 2023, “the identical shall be unfrozen with rapid impact”.

The August 2021 guidelines pertain to customer due diligence, model locker agreement, locker rent, security of strong rooms, and attachment and recovery of contents in a locker and the articles by any law enforcement authority, among others.

The RBI further said there is a need for revision in the Model Agreement drafted by the Indian Banks’ Association (IBA) to fully comply with the revised instructions.

“IBA is being suggested individually to assessment and revise the Model Agreement to make sure that it complies with the necessities of round dated August 18, 2021 and flow into a revised model to all banks by February 28, 2023,” it stated in a round.