Reserve Bank of India (RBI) has issued instructions to banks regarding the safety of bank lockers for exercising due care and necessary precaution for the protection of the lockers provided to the customer, reviewing the systems in force for their operation on an ongoing basis and taking necessary steps, having well-documented security procedures, properly training staff concerned in the procedure, and internal auditors ensuring that procedures are strictly adhered to. Further, as per an RBI communication to banks (in the context of an incident of bank burglary in which safe deposit lockers were broken open and jewellery reportedly taken away), the liability of the bank depends on the facts and circumstances of the incident and that despite the conditions of the lease agreement that lessees should insure the contents of the lockers, bank can be held liable if negligence is proved (having regard to the conditions of the strong room, the lockers, the safeguards, require in the light of the location etc.).

As per inputs from Public Sector Banks (PSBs), during the last three financial years and for the period up to 31.7.2018 in the current financial year, 43 cases of theft took place in the lockers of PSBs and the approximate amount of loss reportedly suffered by customers is ₹ 16.8 crore  .State / Union territory-wise details of theft from bank lockers of PSBs, reported by PSBs during the said period, are at Annexure. PSBs have informed that FIRs were lodged in all the cases, some arrests have been made by the police, and valuables worth ₹ 6.5 crore have been recovered so far in respect of these cases.

As per inputs from PSBs, banks exercise reasonable care and precaution for the protection of the strong room and the lockers provided, and that security measures including security of locker rooms are reviewed periodically. To strengthen security of lockers, banks also monitor access to locker rooms by CCTV cameras and install burglar alarms. Liability to compensate is governed by provisions of extant applicable laws, such as the Indian Contract Act, 1872, and as such, no specific legislation in this regard is proposed.

Annexure

Details of theft from bank lockers reported by Public Sector Banks during the financial years 2015-16to 2017-18and till 31.7.2018in financial year 2018-19

Amount in crore Rs.

S. N.	State / Union territory	Number	Amount
1	Andaman and Nicobar Islands	0	0
2	Andhra Pradesh	0	0
3	Arunachal Pradesh	0	0
4	Assam	0	0
5	Bihar	2	2.60
6	Chandigarh	0	0
7	Chhattisgarh	1	Not ascertainable
8	Dadar and Nagar Haveli	0	0
9	Daman and Diu	0	0
10	National Capital Territory of Delhi	0	0
11	Goa	0	0
12	Gujarat	0	0
13	Haryana	0	0
14	Himachal Pradesh	0	0
15	Jammu and Kashmir	0	0
16	Jharkhand	1	Not ascertainable
17	Karnataka	0	0
18	Kerala	0	0
19	Lakshadweep	0	0
20	Madhya Pradesh	0	0
21	Maharashtra	30	3.26
22	Manipur	0	0
23	Meghalaya	1	Not ascertainable
24	Mizoram	0	0
25	Nagaland	0	0
26	Odisha	0	0
27	Puducherry	0	0
28	Punjab	0	0
29	Rajasthan	0	0
30	Sikkim	0	0
31	Tamil Nadu	3	0.44
32	Telangana	0	0
33	Tripura	0	0
34	Uttarakhand	0	0
35	Uttar Pradesh	4	10.50
36	West Bengal	1	0

Source: Public Sector Banks

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in a Written reply to a question in Lok Sabha.

Bank locker liability can attach where bank negligence in security is proved, despite lease insurance clauses. Banks must maintain documented security procedures, train staff, review strong room and locker safeguards, and have internal audit verify compliance; access monitoring by CCTV and burglar alarms is recommended. Bank liability for theft from lockers depends on facts and may be imposed where negligence in security is proved despite lease clauses obliging lessees to insure contents. Compensation follows applicable contractual and civil law principles; no separate legislation is proposed.