Bank Locker Blues: 56% Shut Or Downsize As Costs Bite, Rules Tighten, Survey Shows

New Delhi: A significant shift is underway in the world of bank lockers, driven by revised regulations, escalating costs, and evolving customer needs. According to a recent survey conducted by LocalCircles, a whopping 56% of bank locker users have either already shut down their lockers or are planning to do so within the near future.

LocalCircles’ recent survey has unveiled the growing discontent among bank locker holders due to surging rental fees and stringent KYC requirements. The survey, encompassing over 23,000 participants from 218 districts, indicates a significant shift in consumer behavior.

The Driving Forces behind this are:

New RBI Rules: 

Effective December 31st, 2023, the Reserve Bank of India (RBI) has implemented a new set of rules that redefine the relationship between banks and locker users. Under these rules, banks transition from being custodians of locker contents to acting as lessors, placing the primary responsibility for safekeeping on the customer.

The Locker Downsize Trend

A staggering 56% of respondents are either discontinuing their locker service or opting for smaller lockers. This trend follows a substantial 100-300% increase in locker charges over the past three years, coupled with enhanced KYC protocols1.

The Cost of Compliance

The survey highlights that while 36% have closed their lockers, 16% are begrudgingly paying higher rates but plan to downsize. Another 4% will soon terminate their locker contracts, and 36% are continuing with the new terms. However, 8% remain undecided.

Unauthorized Debits Raise Concerns

A notable 8% of those surveyed reported unauthorized debits for locker rent from secondary account holders2. This practice, often without the account holder’s consent, has raised questions about the banks’ transparency and accountability.

With the December 31 deadline for new legal lease contracts looming, customers are calling for fair pricing to ensure the viability of bank lockers3. The RBI is urged to address the concerns of unauthorized debits, which affect 8% of locker users.