Bank Locker-Sizes-Opening a locker-Rent-Safety-Alternatives
Bank Locker-Sizes-Opening a locker-Rent-Safety-Alternatives:
One of the safest ways to store valuables like your jewellery, important documents and other precious items in safe deposit vaults or bank lockers. There is a risk of these valuables being
stolen from residential or office premises.
Definition of Bank Locker:
A locker is a small, usually narrow storage compartment. Bank lockers are relatively safe for a person to store valuables for a period of time. Bank Lockers are small boxes kept in a room
that is guarded heavily and has solid iron doors or concrete walls around it. To open the locker a pair of keys is needed, one key is with the bank and the other is with the customer.
Both keys have to be used together to open the locker.
The relationship of the bank and the locker holder is that of a lessor and lessee, or in simple words that of an owner and a tenant. Each customer is charged an annual fee for holding the
locker with the bank.
The facility is extended only to the valued clients maintaining account in the Branch of the Bank, who agree to abide by the set rules and regulations governing the use and operations
of the locker. Following general guidelines should be complied by the Branch.
a) No information about the renting of Lockers, mode of operation or visits made by Lessee / Renters must not be divulged except with the clear consent of the Lessee /Renters and or when compelled by Law.
b) The specimen signature cards and all other books and records in the vault should be kept under lock and key outside business hours.
c) A torch / Electric charger / Candles should be kept ready for use in the vault in case of electricity failure unless an alternative generator IPS is already installed in the Branch.
d) It is desirable that staff posted to the Locker is adequately senior to understand the responsibility attached to the work involved and that they are rotated periodically.
e) Branch staff should not rent a locker jointly with persons other than the members of his / her family. When a locker is let out to the Manager with or without his family members he should report this to Head Office, other officers should report to the Branch Manager.
f) There must always be adequate arrangements for guarding the vault. The Branch must ensure that the security alarm is properly operated and serviced.
g) Wherever legal issues are involved, e.g. in the event of death of the Lessee / Renter, issuance of prohibitory orders etc. legal requirements and practice must be followed.
Branches are advised to obtain specific advice from Legal Advisors and take appropriate action as per Head Office guidelines.
h) The Bank may also forcibly open any locker with prior approval of Head Office after giving due notice to the lessee, if the locker rent/any other charges due to the Bank remains unpaid for a period of two years or if the Bank terminates the lease and the key is not surrendered to the Bank, after the expiry of 6 months from the date of mailing the notice of termination. Such forcible opening of a locker should be done in the presence
of a Magistrate and an inventory of the contents therein shall be made in his presence that should be signed by the authorized officer of the Branch and duly counter-signed by the Magistrate with date. In case of forcible opening due to default in payment of annual rental, the matter should be referred to Head Office prior to forcible opening.
Controls over Access to Locker:
a) A Locker Register as per prescribed format should be maintained for each leased out locker where all the required particulars should be properly entered under proper
authentication. Separate Folio should be allotted for each locker. The date of each operation/access to the locker should be chronologically recorded in the prescribed Register duly authenticated.
b) Complete the relevant columns in the Locker Register and take the signature of the Lessee in appropriate column.
c) Verify signature and authority of access in the locker.
d) When the client operates the locker, an authorized officer should remain present nearby.
e) Record time of entry and departure in Locker Register.
f) The hired out locker should not be allowed to be left unlocked at any time. Soon after each operation, an authorized officer of the Bank should examine the locker to ensure that the same has been properly locked and that the client leaves behind no article
Keys of Locker Handling:
a) Two keys are used for operating a locker, – one of which is delivered to the hirer for keeping under his custody, while the other known as Master key, is retained by the Branch under the custody of Manager/Sub-Manager during the day and kept in an iron safe in the vault over night. For opening a locker the Master key is used in conjunction with the Customer’s key.
b) The duplicate Master key of the locker should be kept under a sealed box for safe custody with another Branch (preferably with main Branch) of the Bank in the area and where there is no other Branch of the Bank in that place, with another Bank of the
c) The key cabinet holding the keys of unused lockers must be kept inside the vault and kept locked under dual control by the Locker Officer and another authorized officer, even during working hours.
Un-let and Surrendered Locker Keys:
a) The Locker Officer should count the keys of Un-let Lockers in the key cabinet at the end of each day to verify that the number of keys agrees with the number of un-let lockers. Any discrepancy must be reconciled immediately
b) At the time of surrender of a locker the client must sign the Final Access Slip. The inside space of the locker should be examined in presence of the client and recorded on the History Card duly authenticated. Surrendered key should be immediately deposited in the key safe and the client shall sign surrender clauses on the Contract Card. The card then is stamped with a “CANCELLED” stamp duly authenticated and placed in the closed file with all other relevant papers.
c) Locker custodian will follow the under mentioned procedures while customers surrendered locker:
i) Follow the procedures as prescribed.
ii) After removal of contents of customer out of Locker receive key from customer and relock the vacant Locker.
iii) Customer will sign the release portion appended to the License.
iv) Place key in ‘Surrendered Key Box’.
v) Withdraw record and agreement from files.
vi) Remove signature card from current cards.
vii) Staple original agreement to signature card and record card, mark “Surrendered” and place in the Surrendered file.
viii) Make appropriate entry in Locker Register
d) Custodians of the surrendered keys and locks will follow the under noted procedures:
i) At convenient intervals remove contents from “Surrendered Key Box”
ii) Confirm that each key is supported by the relevant documentation.
iii) Ensure that the number of keys agrees with the number of lockers shown in the Locker Register as having been surrendered and awaiting change of locks.
iv) File documentation in “Closed” file.
v) From the supply of spare locks, change locks on surrendered lockers.
vi) Place the removed locks and keys in the cabinet.
vii) Place the keys to each of the replacement locks in envelops, seal and deliver to the custodians of the unrented lockers who will initial in the record of the Lockers as evidence of receipt.
viii) Initial record of Lockers to signify that locks has been changed.
ix) Raise new record for those lockers on which locks have been changed and hand over to safe deposit locker custodian.
x) A remark “Surrendered” should be made in the appropriate places in the Locker Register and Due Date Diary preferably by means of a rubber stamp.
Nomination for Return of Articles kept in Safe Custody with the Bank:
a) As per Section 105 of the Bank Company Act, 1991, the Lessee of a Locker may nominate a person to whom in the event of the death of the person leaving the article in the safe custody, such articles may be returned by the Bank. The Lessee may cancel the nomination at any time.
b) As per Section 107 of the Bank Company Act, 1991, the Lessee may nominate aperson to whom the contents of the safety lockers held with the Bank shall be released in the event of the death of the person.
c) In the event of death of the hirer, the contents of the locker should be delivered only to the legal heirs of the deceased client on production of a valid Succession Certificate from a Court of Law after obtaining legal opinion from Legal Adviser/Retainer where the renter did not make nomination.
Questions and answer indications:
1. Define bank locker. (8.2)
2. Discuss about locker facilities provided by the bank.(8.3).
3. How controls over access to locker are made? (8.4)
4. How to maintain locker keys? (8.5)
5. How to manage un-let surrendered locker keys? (8.6)
6. Discuss about the nominations for return of articles kept in locker. (8.7)