Bank locker found surrendered, jewellery missing? How to protect your valuables, avoid costly dispute | Experts explain

A Delhi-based woman has won a consumer dispute against the Union Bank of India after her joint bank locker, held with late father-in-law, was surrendered years earlier without knowledge. The bank had continued charging her annual locker rent, but when she approached it to access her belongings, she found that jewellery worth around ₹47 lakh was allegedly missing.

The woman, a resident of Naraina Vihar, approached Delhi State Consumer Disputes Redressal Commission, seeking compensation for the missing jewellery, interest and damages for mental agony and litigation expenses.

In a judgement pronounced on October 27, the commission directed the bank to refund ₹47 lakh, along with 6% simple interest from September 1, 2018, to October 27, 2026. It also ordered the bank to pay ₹3 lakh for mental agony and harassment and ₹50,000 towards litigation costs.

The incident highlights the importance of keeping proper records of bank locker arrangements, retaining proof of valuables such as gold jewellery and coins deposited and being aware of one’s rights as a locker holder.

Can a bank surrender a locker without telling you?

Banks cannot quietly close or surrender a locker without following procedures as prescribed by the Reserve Bank of India (RBI) and without giving formal prior notice, according to three experts who spoke to Livemint.

“Closing a locker is a two-way process that requires a written request signed by the customer and the return of the keys with an official acknowledgement receipt,” said Supriya Majumdar, Partner at Elarra Law Offices.

For joint lockers, the operating mandate dictates access, and banks cannot hand over or close access unilaterally without involving or notifying the authorised holders according to the terms of the agreement for locker, she added.

Majumdar also explained that if the bank locker’s rent is unpaid for three consecutive years or a locker remains unused, banks have the right to break it open or handle it, but this can be done only after sending a written notice and following a documented procedure with independent witnesses.

When is a bank liable for missing items from a locker?

If the loss comes from the bank’s failure, such theft, burglary, fire, building collapse or fraud by its staff, then the bank is to be held responsible for it, according to Megharanjani Chandu, Senior Associate at SKV Law Offices.

The RBI fixes liability at 100 times the annual locker rent. However, banks aren’t liable for natural calamities or for the customer’s own negligence.

“The 100x compensation isn’t a ceiling on what a consumer commission can award. Where the bank is at fault, the commission can order the actual value,” the expert explained. In the Delhi case, it ordered ₹47 lakh plus interest, ₹3 lakh for mental agony and ₹50,000 in costs.

In case the bank refuses to pay any compensation for the loss, the locker holder can file a complain to the bank in writing and ask for the access register, surrender papers and CCTV footage, Chandu noted.

They can also approach the RBI Ombudsman (cms.rbi.org.in). It is a free facility and can award up to ₹30 lakh, along with ₹3 lakh for harassment.

Chandu advised aggrieved locker holders to file a complaint with the consumer commission within 2 years for high-value losses. One should also file a police FIR if they suspect theft of valuables or tampering, she added.

What documents should customers maintain?

In order to establish ownership and value of the jewellery kept in a bank locker, customers should preserve purchase invoices, valuation certificates, photographs, insurance records and inheritance documents, wherever applicable, Vinita Sejwal, Advocate at Delhi High Court, noted.

This can help customers present evidence of the valuables stored in a bank locker if any items go missing or they suspect the locker has been tampered with.

“Banks are required to maintain records of locker access and operations; however, they ordinarily do not maintain an inventory of the contents, making independent documentation particularly important,” she added.