The Reserve Bank of India (RBI) has modified certain bank locker rules and regulations that involve providing customers with the latest locker agreements. According to the RBI, the new rules will come into effect from 1st January 2023.
As per the revised rules, customers do not have to open a savings account in the bank if they want to rent lockers. To avail of this, you should possess genuine KYC documents, duly signed locker agreement documents, etc. To know more about the new locker rules of 2023, keep reading.
New Bank Locker Rules to Come into Action from 1st January 2023
Mentioned below are some noteworthy rules and regulations that will come into action from 1st January 2023:
- In accordance with the present standards of the Reserve Bank of India (RBI), all commercial banks or financial institutions are entitled to compensate for the loss of a locker caused due to their negligence.
- As per the RBI guidelines, a financial institution will not compensate any loss or damage to the locker caused due to natural disasters or ‘Acts of God’ like thunderstorms, floods, earthquakes, and so on.
- According to the revised rules, in case a customer damages or loses their bank locker items due to their negligence, the same will not be compensated by the financial institution.
- With the implementation of the latest operational standards since 1st January 2022, all locker holders must implement a revised locker agreement with their financial institutions.
- As per the RBI statement, the IBA-drafted model locker agreement should adhere to the latest instructions and the directives of the Supreme Court.
- According to the updated bank locker rules of 2023, every commercial bank and financial institution will notify their customers by email or send an SMS to their registered email ID and phone number respectively. By doing so, customers will get an alert about the date and time of any unauthorized action.
- RBI has stated that financial institutions should take a term deposit from their customers while allotting them lockers. By doing so, they protect their customers from situations where the locker-holder does not operate their locker or pay rent.
Keep in mind that your financial institution will thoroughly check your application form and KYC documents before allotting a locker to you. So, make sure that your documents are genuine.
What are KYC Documents?
The full form of KYC is ‘Know Your Customer’. In the world of financial transactions, KYC signifies the verification process in order to create the customer’s identity. Verifying KYC ensures that all kinds of deceitful activities financial frauds and funds laundering are eliminated. According to the RBI rules, every financial institution should conduct KYC verification of customers before offering them financial services.
List of Legal KYC Documents
To complete a thorough KYC verification, you have to provide some specified documents. Mentioned below are some important documents required for KYC verification:
- Identity Proof (comprise PAN card, Aadhaar card, passport, driving license, voter ID card, etc.)
- Address Proof (include Aadhaar card, electricity bill, utility bill, rental agreement, etc.)
- Income Proof (comprise your salary slips for the last three months, bank account statement, Income Tax Returns, etc.)
Financial institutions usually require your income proof to get an idea about your regular income and credit card limit.
Now that you have understood the KYC documents and list of documents required while opting for KYC verification, it is equally important to understand the KYC status.
What is KYC Status?
The KYC status is a procedure managed by the Reserve Bank of India (RBI) to verify the genuineness and trustworthiness of customers. Your financial institution will minutely check your KYC status to confirm whether you are eligible to avail of a bank locker or carry out any other financial activities. By doing so, they will prevent illegal activities such as identity theft, money laundering, investment fraud, etc.
What are the Types of KYC Status?
The KYC status is classified into six types as stated below:
1. KYC Registered
The status of ‘KYC registered’ signifies that an application for KYC verification is successfully submitted according to the guidelines of KYC.
KYC Under Process
The ‘Under Process’ on KYC status signifies that your application is accepted but its verification is yet to be approved by KYC Registration Agency (KRA).
2. KYC On-Hold
When your KYC application status shows ‘on hold’ when any discrepancy arises in the documents submitted for KYC.
3. KYC Rejected
A ‘KYC rejected’ status means that the KYC Registration Agency has rejected a KYC application.
4. KYC Not Available
The ‘KYC Not Available’ status arises if no record is available for KYC verification against the particular PAN.
5. CVL MF Verified
This KYC status appears when an application for KYC verification is successfully approved.
6. Steps to Check KYC Status
Mentioned below are the steps to check KYC Status:
Step 1: Navigate to the official website of Central Depository Service Limited (CDSL)
Step 2: Visit the ‘Inquire on KYC’ section wherein you can verify your KYC status
Step 3: Enter your name, date of birth, and Permanent Account Number (PAN)
Step 4: Insert the CAPTCHA code as shown
Step 5: Select ‘Submit’ and you will be able to see your KYC verification status
Having a clear idea about the emerging bank locker rules will help you carry out all formalities while opting for a bank locker. However, keep in mind that every financial institution thoroughly checks the KYC documents of a person before allowing them to use locker services. Hence, make sure to keep all required documents handy when your visit your bank for this purpose.
Reference Links:
- https://www.outlookindia.com/business/new-bank-locker-rules-to-take-effect-on-january-1-2023-know-details-news-248233
- https://economictimes.indiatimes.com/wealth/save/new-bank-locker-rules-effective-from-january-1-how-locker-customers-will-be-impacted/articleshow/88661956.cms
- https://economictimes.indiatimes.com/wealth/save/new-locker-rules-banks-need-to-provide-new-locker-agreement-to-customers-by-jan-2023/articleshow/96191287.cms
- https://www.cnbctv18.com/personal-finance/new-bank-locker-rules-from-jan-1-faq-how-to-renew-agreement-compensation-for-holders-key-details-15541501.htm
- https://www.bajajfinservmarkets.in/kyc/kyc-documents.html
- https://www.bajajfinservmarkets.in/kyc/kyc-status.html
