1. Security aspects concerning Safe Deposit Lockers
2. Precautions followed by bank
Security aspects concerning Safe Deposit Lockers
Banks ought to exercise guardianship and necessary precaution for the protection of the lockers provided to the client. Banks ought to review the systems good for the operation of safe deposit vaults/locker at their branches on an Associate in Nursing on-going basis and take necessary steps. The safety procedures ought to be documented and also the involved workers ought to be properly trained within the procedure. The inner auditors ought to make sure that the procedures area unit strictly adhered to. Client due diligence for allotment of lockers / Measures concerning lockers that have remained dead. When experiencing explosives and weapons found during a locker during a bank branch, banks ought to remember the risks concerned in dealings safe deposit lockers. During this affiliation, banks ought to take the following measures:
- Banks ought to perform client due diligence for each new and existing customer a minimum of to the amount prescribed for patrons classified as medium risk. If the client is assessed during a higher risk class, client due diligence as per KYC norms applicable to such higher risk class ought to be dispensed.
- Wherever the lockers have remained un-operated for over 3 years for medium risk class or one year for the next risk class, banks ought to straight off contact the locker-hirer and advise him to either operate the locker or surrender it. This exercise ought to be dispensed notwithstanding the locker employer is paying the rent frequently. Further, banks ought to raise the locker employer to relinquish in writing, the explanations why he/she failed to operate the locker. Just in case the locker-hirer has some real reasons as within the case of NRIs or persons United Nations agency area unit out of city thanks to a transferable job etc., banks might permit the locker employer to continue with the locker. Just in case the locker-hirer doesn’t respond nor operate the locker, banks ought to take into account the gap between the lockers when giving due notice to him. During this context, banks ought to incorporate a clause within the locker agreement that just in case the locker remains un-operated for over one year, the bank would have the correct to cancel the allotment of the locker and open the locker, notwithstanding the rent is paid frequently.
- Banks ought to have clear procedures caught up in consultation with their legal advisers for breaking opens the lockers and taking stock of inventory.
- If the only real locker employer nominates an individual banks ought to provide such politico access of the locker and liberty to get rid of the contents of the locker within the event of the death of the only real locker employer. just in case the locker was employed together with the directions to control it underneath joint signatures, and also the locker hirer(s) nominates person(s), within the event of death of any of the locker hirers, the bank ought to provide access of the locker and also the liberty to get rid of the contents together to the survivor(s) and also the nominee(s).
- Just in case the locker was employed together with survivorship clause and also the hirers schooled that the access of the locker ought to lean over to ‘either-or survivor’, ‘anyone or survivor’ or ‘former or survivor’ or in step with the other survivorship clause, banks ought to follow the mandate within the event of the death of 1 or additional of the locker-hirers.
Precautions followed by bank
The banks ought to take the subsequent precautions before surrendering the contents:
- Bank ought to exercise guardianship and caution in establishing the identity of the survivor(s) / nominee(s) and also the truth of death of the locker employer by getting acceptable documentary evidence;
- Banks ought to create diligent effort to search out if there’s any order from a competent court restraining the bank from giving access to the locker of the deceased; and
- Banks ought to create it clear to the survivor(s) / nominee(s) that access to locker/ safe custody articles is given to them solely as a trustee of the legal heirs of the deceased locker employer i.e., such access given to him shall not have an effect on the corrector claim that somebody might have against the survivor(s) / nominee(s) to whom the access is given.
- Similar procedure ought to be followed for the core of articles placed within the safe custody of the bank. Banks ought to note that the ability of nomination isn’t out there just in case of deposit of safe custody articles by over one person.
- Banks ought to prepare a listing before returning articles left in safe custody / before allowing removal of the contents of a security deposit. The inventory shall be within the acceptable Forms prescribed by run batted in from time to time.
Further, just in case the nominee(s)/survivor(s)/legal heir(s) needs to continue with the locker, banks might enter into a recent contract with nominee(s) / survivor(s) / legal heir(s) and additionally adhere to KYC norms in respect of the nominee(s) / legal heir(s). Banks don’t seem to be needed to open sealed/closed packets left with them for safe custody or found in locker whereas cathartic them to the nominee(s) and extant locker hirers/investor of safe custody article.