Module: | KYC, NPAs, Advances & Investment Valuations
Q194: Consider the following statements regarding the allotment and infrastructural security guidelines for safe deposit lockers:
1. To ensure prompt payment, banks can demand a Term Deposit covering exactly three years' rent plus break-open charges from both new and existing locker hirers.
2. In the event of the surrender of a locker, the bank must proportionately refund any advance rent collected from the customer.
3. The bank's vault officer is strictly prohibited from remaining present when the locker is actually opened by the hirer after the first key is unlocked.
4. CCTV recordings of entry and exit to the locker strong room must be preserved by the bank for a minimum period of 180 days.
Which of the statements given above is/are correct?
2. In the event of the surrender of a locker, the bank must proportionately refund any advance rent collected from the customer.
3. The bank's vault officer is strictly prohibited from remaining present when the locker is actually opened by the hirer after the first key is unlocked.
4. CCTV recordings of entry and exit to the locker strong room must be preserved by the bank for a minimum period of 180 days.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. Statement 1 is incorrect because the guidelines explicitly state that while banks can demand a 3-year rent Term Deposit from new hirers at the time of allotment, they are strictly prohibited from insisting on this from existing locker holders or customers with satisfactory operative accounts.
Statement 2 is correct: The rules legally obligate the bank to refund the proportionate amount of advance rent upon locker surrender.
Statement 3 is correct: The regulatory framework mandates privacy, stating the bank officer must not remain present when the customer physically opens their locker.
Statement 4 is correct: The mandate requires banks to preserve strong room CCTV footage for a minimum of 180 days for security auditing.
Statement 2 is correct: The rules legally obligate the bank to refund the proportionate amount of advance rent upon locker surrender.
Statement 3 is correct: The regulatory framework mandates privacy, stating the bank officer must not remain present when the customer physically opens their locker.
Statement 4 is correct: The mandate requires banks to preserve strong room CCTV footage for a minimum of 180 days for security auditing.