RBI extends time for renewal of pacts for present lockers

The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai.

The Reserve Financial institution of India (RBI) seal is pictured on a gate outdoor the RBI headquarters in Mumbai.
| Picture Credit score: Reuters

The Reserve Financial institution of India (RBI) has determined to increase the time limit for banks to finish the method of renewal of agreements for the present secure deposit lockers in a phased method via December 31, 2023, with intermediate milestones of fifty% via June 30, 2023, and 75% via September 30, 2023. The sooner time limit used to be January 1, 2023.

“Additional, banks had been prompt to make essential preparations to facilitate execution of the revised agreements via making sure the provision of stamp papers,” the RBI mentioned in a round.

“Additional, in instances the place operations in lockers had been frozen for non-execution of settlement via January 1, 2023, the similar will probably be unfrozen with rapid impact,” the round mentioned.

Vital directions on this regard had been issued to the banks, the RBI mentioned.

The RBI vide its round dated August 18, 2021, had issued revised directions with appreciate to secure deposit locker/secure custody article facility that required banks to go into into revised agreements with the present locker holders via January 1, 2023.

On the other hand, it has come to the attention of the RBI that numerous shoppers are but to signal the revised settlement. In lots of instances, the banks are but to tell the purchasers in regards to the want to accomplish that sooner than the stipulated date [January 1, 2023],” the central financial institution mentioned.

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