On Friday, the Supreme Court (SC) directed the Reserve Bank of India (RBI) to set new regulations within six months on locker facility management, which will be followed by banks across the country.

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The apex court observed that banks cannot leave their customers in the lurch by claiming ignorance about the contents of their lockers. The SC added that present regulations on locker management were inadequate and muddled.

A bench comprising Justice MM Shantanagoudar and Justice Vineet Saran said with the advent of globalisation, domestic as well as international transactions have increased manifold. Banks have begun to play a huge role in the life of the common man.

As a result, lockers have become an integral part of the services provided by a bank to its customers. So, it becomes necessary that RBI lays down comprehensive rules for banks to manage lockers, said the SC.

The judgment came while hearing a case linked to the United Bank of India’s Kolkata branch. A resident of Kolkata, Amitabha Dasgupta, had filed an appeal against an order of the National Consumer Disputes Redressal Commission.

Dasgupta said that his locker was broken open after the bank claimed that he had missed his dues. He denied the claims and also said that when the bank gave him back his jewels, he found that he was given just two of seven ornaments.

He filed a complaint at the District Consumer Forum seeking a direction to the bank to return his ornaments, or pay Rs 3 lakh as the cost of jewelry, and compensation for damages.

However, the National Consumer Disputes Redressal Commission accepted the State Commission’s findings, which said that Consumer Forum has limited jurisdiction to adjudicate on the recovery of the contents of the locker.

These are the points highlighted by SC on locker management:

The RBI must frame rules on locker management within six months.

Being custodians of public property, banks cannot claim ignorance of a locker’s content.

Customers have to be informed before a bank breaks open a locker.

A locker can be broken only in the presence of authorised officials and one independent witness.

The RBI can frame rules on the responsibility of a bank in case the contents of a locker are lost.

Banks, on their part, cannot say that they were not aware of a locker’s contents and escape liability.

A fine of Rs 5 lakh was imposed on the United Bank of India for breaking open a locker without informing the customer — Amitabha Dasgupta.

The court observed that the fine amount can be recovered from the erring officials if they are still in service, or deducted from their salary.

The rules laid down by SC will be in place till RBI comes up with the new regulations.