Many banks ask customers to open fixed deposits for availing of safe locker facilities. Some banks also ask customers to buy an insurance policy. The new code tries to put an end to it – albeit with a catch.
Though banks can’t insist on an FD, they can still ask for an FD to cover the rent for the locker facility. “Banks can obtain a fixed deposit which would cover three years’ rent and charges for breaking open the locker in case of an eventuality,” says Kulkarni. But it is still a better deal for customers. For example, if a bank insisted on Rs 25,000-fixed deposit for a locker facility, now it can ask only for an FD of, say Rs 3,000 â€” or equal to the rent for the locker for three years. However, selling life insurance policies on a quid pro quo basis seems definitely out.