SC Directs RBI To Frame New Bank Locker Regulations In Six Months
The Supreme Court held that banks cannot wash off their hands towards their customers for the operation of lockers. PTI Outlook Web Bureau 2021-02-20T08:29:21+05:30 SC Directs RBI To Frame New Bank Locker Regulations In Six Months outlookindia.com 2021-02-20T08:32:40+05:30
The Supreme Court of India on Friday directed the Reserve Bank of India (RBI) to lay down regulations within six months mandating the steps to be taken by banks with respect to locker facility management.
It held that banks cannot wash off their hands towards their customers for the operation of lockers.
NEW DELHI: The Supreme Court on Friday ruled that breaking open a customer’s locker by a bank was a serious breach of trust and ordered United Bank of India to pay Rs 6 lakh compensation to an aggrieved person whose locker was broken open at a Kolkata branch more than 25 years ago.
The bank informed Amitabha Dasgupta in 1995 that the locker had been broken open and allotted to another person as the rent was not paid for 1993-94. When Dasgupta proved that he had paid rent for the previous year, the bank admitted its mistake. When the customer wanted back the seven pieces of jewellery deposited in the locker, the bank could return only two.
Banks Duty-Bound To Exercise Due Diligence In Maintaining And Operating Their Locker Facility: Supreme Court Issues Guidelines livelaw.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from livelaw.in Daily Mail and Mail on Sunday newspapers.
Banks are the custodians of public property and they "cannot leave their customers in the lurch" by claiming ignorance of the contents of their lockers, the Supreme Court said on Friday as it observed that "(the) present state of regulations on locker management is inadequate and muddled"
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Highlights
A bench comprising Justices Mohan M. Shantanagoudar and Vineet Saran said that each bank is following its own set of procedures and there is no uniformity in the rules.
Present state of affairs on management of bank lockers is inadequate and muddled, RBI to lay down regulations, within six months, for steps necessary for banks on this issue.
New Delhi: The Supreme Court on Friday (February 19) said the present state of affairs on management of bank lockers is inadequate and muddled, and there is no uniformity in rules as it directed the RBI to lay down regulations, within six months, for steps necessary for banks on this issue.