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Supreme Court directs RBI to lay down regulations, held banks responsible for locker security

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Supreme Court holding the banks responsible for operation of lockers directed the Reserve Bank of India (RBI) to lay down regulations within six months mandating the steps to be taken by banks with respect to locker facility management.

Supreme Court bench comprising Justices MM Shantanagoudar and Vineet Saran directed the Reserve Bank of India (RBI) to lay down regulations within six months mandating the steps to be taken by banks with respect to locker facility security.

Supreme Court bench said with the advent of globalization, banking institutions have acquired a very significant role in the life of the common man as both domestic and international economic transactions within the country have increased multiple folds.

“Thus, as is evident from the rising demand for such services, lockers have become an essential service provided by every banking institution. Such services may be availed of by citizens as well as by foreign nationals,”

“we are now transitioning from dual key­operated lockers to electronically operated lockers,”

“On the other hand, there is the possibility that miscreants may manipulate the technologies used in these systems to gain access to the lockers without the customers’ knowledge or consent,”

“Thus it is necessary that the RBI lays down comprehensive directions mandating the steps to be taken by banks with respect to locker facility/safe deposit facility management,”