The Supreme Court on Friday directed the Reserve Bank of India to frame new locker rules within six months that banks across the country will follow, reported NDTV. The court noted that banks were the custodians of public property and therefore have to be accountable for the contents of their lockers.
“Banks are under the mistaken impression that not having knowledge of the contents of the locker exempts them from [the] liability for failing to secure the lockers in themselves as well,” the Supreme Court bench of Justices Mohan M Shanthanagoudar and Vineet Saran said. “In as much as we are the highest court of the country, we cannot allow the litigation between the bank and locker holders to continue in this vein.”
The court also outlined 15 guidelines that banks will follow till the new rules and regulations were framed, reported Live Law. This includes maintenance of a locker register and a locker key register, updating the locker register frequently, notifying the original locker holder before changes in allotment, and provide reasonable opportunity to withdraw articles. The court also said that banks may consider using appropriate technologies, including block chain technology.
“The custodian of the bank shall additionally maintain a record of access to the lockers, containing details of all the parties who have accessed the lockers and the date and time on which they were opened and closed,” one of the court’s guidelines read. “The concerned staff shall also check that the keys to the locker are in proper condition.”
The Supreme Court Bench issued the directives while disposing an appeal against a judgement of the National Consumer Disputes Redressal Commission. The complainant had filed a consumer complaint before the District Consumer Forum for directions to United Bank of India to return the seven ornaments that were in their locker before it was broken. The bank had broke opened the complainant’s locker citing pending dues, a claim that the petitioner has denied, according to NDTV.
The consumer redressal commission had agreed to the state Consumer Forum’s decision to reduce the compensation of Rs 3 lakh to Rs 30,000. The national and state consumer forums had ruled that the “civil court can decide on the loss of the contents”. Following this, the complainant approached the Supreme Court.
The Supreme Court, during Friday’s hearing, said that banks cannot “impose unilateral and unfair terms on consumers”, and fined the United Bank of India Rs 5 lakh for breaking the locker. The court said the penalty may be recovered from the officials concerned if they remained in service, reported NDTV.
“There is no uniformity in procedure with each bank having its own procedure,” the court said, according to the news channel. “What happens if one’s locker broke open by the bank and locker’s contents are disputed? Whose responsibility is it?” The court also asked the bank to pay the petitioner Rs 1 lakh as litigation cost.
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