Banks could encounter circumstances when the locker-hirer does not maintain the locker or pay the fee. Banks are permitted to demand a Term Deposit at the time of allotment, which would cover three years’ rent plus the costs associated with opening the locker in the event of an emergency, to assure prompt payment of locker rent.

According to the RBI notification dated August 18, 2021, “Banks, however, shall not insist on such Term Deposits from the existing locker holders or those who have satisfactory operative account. The packaging of allotment of locker facility with placement of term deposits beyond what is specifically permitted above will be considered as a restrictive practice.”