The recent SBI branch robbery in Vijayapura, Karnataka, where armed men looted Rs 8 crore cash and 58 kg of gold, has raised a critical question in the minds of customers: What happens if gold kept in a bank locker is stolen?
Understanding Bank Lockers in India
Unlike pledged gold (kept by banks as security for loans), items stored in a bank locker belong solely to the customer. Lockers are rented to customers, who use them to keep gold, jewelry, documents, and other valuables safe.
But here's the catch: Banks in India do not insure the contents of lockers. They only provide the physical space and security infrastructure. This means the responsibility for what is kept inside lies with the customer.
RBI Guidelines on Locker Safety
In August 2021, the Reserve Bank of India (RBI) issued new rules to improve locker safety. As per the guidelines:
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Banks are not responsible for the contents of lockers unless the loss is due to negligence or fraud on the part of the bank.
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If theft, fire, or building collapse occurs due to the bank's failure to maintain safety standards, the bank must compensate the customer up to 100 times the annual locker rent.
Customers are advised to insure their jewelry or valuables stored in lockers through third-party insurance.
What Happens If Gold Is Stolen From a Locker?
1. Bank's Liability Is Limited: If gold is stolen directly from a locker due to a robbery, the bank is liable only if negligence is proven- for example, failure of security systems or lack of proper monitoring.
2. Police Investigation: The incident is treated as a criminal case. Customers need to file an FIR and provide proof of what was kept inside the locker.
3. Insurance Cover: Since banks do not provide insurance for locker contents, customers must rely on personal jewelry/valuables insurance to recover losses.
4. Compensation Cap: As per RBI rules, banks can be ordered to pay a maximum compensation of 100 times the locker's annual rent if found negligent. For instance, if the annual rent is Rs 3,000, the maximum liability is Rs 3 lakh -far less than the value of most gold jewelry.
Key Difference: Pledged Gold vs Locker Gold
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Pledged Gold (for loans): The bank is fully responsible for its safety. If stolen, the bank replaces it via insurance.
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Locker Gold (personal storage): The bank has limited liability. Customers are advised to self-insure their valuables.
While the SBI robbery in Karnataka highlights the risks of traditional bank heists, it also underlines a lesser- known fact: locker contents are not automatically insured by banks in India. Customers must take proactive steps, such as buying jewelry insurance, to secure their valuables against theft or disaster.
