RBI extends deadline to renew agreement for safe deposit lockers

The Reserve Bank of India extended the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers.

The deadline for renewal of agreement has been extended in a phased manner by December 31, 2023, with intermediate milestones of 50 per cent by June 30, 2023, and 75 per cent by September 30, 2023, the RBI said in a press release.

The RBI also advised banks to make necessary arrangements to facilitate execution of the revised agreements by ensuring the availability of stamp papers.

It further directed banks to unfreeze operations in lockers that were frozen due to non-execution of agreement by January.

In August 2021, the RBI had issued revised instructions with respect to safe deposit locker/safe custody article facility that required banks to enter into revised agreements with the existing locker holders by January 1, 2023.