Bank locker theft: Will you get your money back if jewellery goes missing?

The safest option that comes to mind when it comes to keeping your gold jewellery is a bank locker. However, there is always a fear lingering in the mind: what if a theft occurs at the bank? Will the bank compensate?

The Reserve Bank of India regulates the functioning of locker facilities in India and has laid down a regulatory framework, in addition to the operational rules of individual banks. The RBI last updated its guidelines in August 2021 to improve transparency and accountability.

Under the RBI’s locker guidelines, banks are required to exercise reasonable care in safeguarding locker facilities. However, in cases such as theft, burglary, fire, robbery or fraud committed by bank employees, their liability is limited to 100 times the annual locker rent.

How much compensation do banks provide for theft?

Banks have no authority to ask customers what is stored inside their lockers and are not allowed to maintain an inventory of locker contents. However, if any asset goes missing due to the bank’s negligence, the bank is liable to compensate the customer.

As per the RBI’s revised guidelines, if a bank’s negligence or security failure is proven to be the reason for the loss, the bank is liable to pay compensation of up to 100 times the annual locker rent. This compensation amount is the fixed upper limit that a customer can claim, and it is not automatically guaranteed. It is contingent on proof of fault on the part of the bank.

For instance, if the annual locker rent is ₹4,000, the maximum compensation the bank should pay is ₹4,00,000. In case of any mishap, if the bank’s negligence or a security lapse cannot be proved, no compensation is provided.

Are bank lockers safe?

From a physical security perspective, bank lockers are robust. The RBI mandates CCTV surveillance—footage must be kept for 180 days—secure access control, fire-resistant vaults, and natural disaster readiness. But that doesn’t mean lockers are invincible.

Customers are encouraged to nominate someone for easier succession. In case of the holder’s death, lockers are released to the nominee or legal heirs within 15 days, assuming proper documents are submitted.

Can you insure the jewellery stored in lockers?

Banks do not provide insurance for gold jewellery deposited in their lockers. This is because they do not have a record of the contents in the locker, which is known only to the customer. “Banks shall clarify in their locker agreement that as they do not keep a record of the contents of the locker or of any articles removed therefrom or placed therein by the customer, they would not be under any liability to insure the contents of the locker against any risk whatsoever,” the RBI said. “Banks shall under no circumstances offer, directly or indirectly, any insurance product to their locker hirers for insurance of locker contents,” it said.