How Can the Safety of Bank Lockers be Improved?

By Shifanaz M

Bank Lockers are presumed to be one of the safest avenues to store personal valuables. People generally store their possessions in the locker to protect it from theft, natural disasters or accidents like fires.?

The latest RBI guideline states that the user bears the entire responsibility in case of loss or theft of the locker key due to the user’s negligence. Banks hold accountability for the basic safety of the locker and are liable to bear any loss caused by the bank’s negligence. This includes losses due to fire, theft, building collapse, or fraud by an employee. However, this does not apply to any loss caused due to a natural calamity, civil disturbance, or in cases of a coup de main.

coup de main: A sudden surprise attack, especially one made by an army during war.

A recent Local Circles survey indicates a growing trend among Indian bank locker customers of either closing or downsizing their locker subscriptions. Of the 11,000 respondents, 36% have already closed their lockers, 16% are considering downsizing, and 4% are contemplating complete closure.?

This shift in customer sentiment highlights a deeper dissatisfaction with the existing experience of bank lockers.

What can be done to improve the safety, security and experience of bank lockers?

1. Strong Room Construction: It is important to address the issue of strong room construction's antiquated nature. To improve security, strong room construction must be modernized. Utilizing sophisticated materials, novel building processes, and modular designs can considerably improve the resistance of strong rooms against physical attacks and natural calamities.

2. Security Measures: It may be argued that the present security measures, such as passive surveillance cameras only for recording video, and sporadic guard presence, are insufficient. The security of bank vaults can be further increased by integrating readily available technologies. Some examples include adding intrusion detection systems to detect unwanted entry, and implementing real-time surveillance with sophisticated camera systems and armed patrols.

3. Response in the Event of a Robbery Attempt: Questions concerning the efficacy of the present security system for bank lockers are raised by the lack of an active response to theft attempts during non-operational hours. A quick response system in the event of a robbery attempt can be put in place using technologies like intrusion alarms, motion detection and warning notifications, and a direct link to law enforcement agencies and first responders. Losses can be avoided or reduced with prompt intervention during a crisis.

4. Insurance: Though the new RBI guidelines have mandated a compensation of up to 100 times the annual rent, it will often be insufficient compared to the value of the items stored. Ensuring that adequate insurance is provided based on the stored valuables seems like the right thing to do from a customer experience perspective.?

As a bank, understanding customer preferences and needs, and building better systems is the need of the hour.

As customers, following the philosophy of “Trust, But Verify” will hold us in good stead as we navigate our relationship with banks.

Stay informed and secure.