SC tells RBI to frame bank locker rules

The Supreme Court on Friday directed the Reserve Bank of India to frame comprehensive rules within six months on bank locker and safe deposit facilities to prevent the banks from imposing unilateral and unfair terms on the consumers. Pending the RBI rules, the Bench of Justices Mohan M Shantanagoudar and Vineet Saran said the principal laid down by it on responsibilities of the bank will be binding on all banks providing such facilities.

It also directed the RBI to draft suitable rules on the responsibility of the bank for loss or damage to the contents of the lockers.

The case stemmed from Kolkata-based Amitabha Dasgupta challenging the United Bank of India for its decision to break open his mother's locker taken on rent in Deshapriya Park, Kolkata branch, in the early 50s. He was made a joint holder of the locker by his mother, who is no more. The locker was broken open despite full payment of rent and some jewellery put in it was found missing.

The court imposed a cost of Rs 5 lakh on the bank as a compensation to Dasgupta, holding that the amount be deducted from the salary of the erring officers. If they had already retired, it said the bank will have to pay the cost. It also ordered Rs 1 lakh to be paid to the appellant as the litigation expenses.

The victim, however, got justice after 25 years of struggle. Even in the Supreme Court, the case went on for more than a decade as he had filed the appeal back in 2010.