Banks Cannot Assess Locker Contents, Insurance Coverage Not Feasible: Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday stated that banks cannot inspect or maintain records of items kept in customer lockers, as doing so would violate established banking regulations. She made the remarks in the Lok Sabha during Question Hour while responding to a supplementary query raised by Congress member Kirsan Namdev. Sitharaman emphasized that monitoring or keeping track of valuables stored in lockers is not permitted under banking norms, and therefore banks do not undertake such practices. The Finance Minister further explained that in cases of loss, including incidents such as locker break-ins or damage to stored items, a standard compensation framework has been established. As per the guidelines, locker holders are entitled to compensation equivalent to 100 times the annual locker rent. Sitharaman clarified that since banks are unaware of the contents stored inside lockers, it is not practical to provide insurance coverage based on the actual value of the items. She noted that assessing individual lockers separately is not feasible, which is why a uniform compensation rule has been adopted. According to her, this standard ensures a consistent approach in cases where damage or loss occurs due to incidents like locker breaches.