Finance Minister Clarifies Locker Insurance Policy

Finance Minister Nirmala Sitharaman stated that banks are unable to know or record what customers store in lockers, ruling out insurance coverage based on contents due to regulations. She confirmed standard coverage is 100 times the annual locker rent, as item inspection is impractical.

Finance Minister Nirmala Sitharaman addressed the Lok Sabha, stressing that banks cannot observe or document what customers place in their lockers. She emphasized that doing so would breach banking regulations, thereby nullifying the option of differential insurance coverage based on locker contents.

Sitharaman was responding to Congress MP Namdeo Dasaram Kirsan's inquiry, clarifying that standard insurance for locker holders is set at 100 times the annual locker rent. This policy stands due to the impracticality of assessing the actual value of locker contents.

She further reinforced that inspecting lockers is not viable for banks, and therefore, the uniform insurance policy remains unchanged, as there are no current considerations for any adjustments.

(With inputs from agencies.)