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Bank Locker Insurance Fixed at 100x Annual Rent, Says FM Sitharaman

Finance Minister Nirmala Sitharaman stated that standard insurance for bank locker loss is fixed at 100 times the annual locker rent. She clarified that banks are prohibited from checking or recording the valuables kept by customers, as it would violate privacy and banking rules. Due to this restriction, offering insurance based on the actual value of stored items is not feasible. The current uniform compensation rule remains in place with no immediate proposal for change.

Key Points: Bank Locker Insurance: 100x Rent Cover, No Content Checks

  • Fixed compensation at 100x annual rent
  • Banks cannot inspect locker contents
  • Rule protects customer privacy
  • No current proposal to change system
  • Finance Bill 2026 approved by Parliament
2 min read

Locker loss cover fixed at 100 times annual rent: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman clarifies bank locker insurance is capped at 100 times the annual rent, as banks cannot inspect stored valuables.

"Because of this restriction, it is not possible to offer insurance coverage based on the actual value of items stored. - Nirmala Sitharaman"

New Delhi, March 30

The standard insurance coverage for bank locker holders is fixed at 100 times the annual locker rent in case of any loss, Finance Minister Nirmala Sitharaman said on Monday.

Replying to a supplementary question in the Lok Sabha during Question Hour, FM Sitharaman clarified that banks are not allowed to check or record the valuables kept by customers in lockers, as doing so would violate banking regulations.

"Because of this restriction, it is not possible to offer insurance coverage based on the actual value of items stored," the Finance Minister stated.

FM Sitharaman explained that any attempt by banks to monitor what customers store in lockers would amount to a breach of privacy and rules.

The minister said that since banks cannot inspect or evaluate locker contents, a uniform rule has been put in place.

"Under this, customers are entitled to compensation of up to 100 times the annual locker rent in case of loss, such as theft or damage," FM Sitharaman explained.

The finance minister added that offering separate or differential insurance coverage for each locker is not practical under the current system.

"As of now, there is no proposal under consideration to change this arrangement," FM Sitharaman stated.

Meanwhile, earlier in the day, the Parliament approved the Finance Bill 2026 with the Rajya Sabha returning it to the Lok Sabha by a voice vote, completing the legislative process to provide the legal backing for the proposals of the Union Budget 2026-27 to kick in during the new financial year beginning from April 1.

The Lok Sabha passed the bill on March 25, along with 32 amendments. The Rajya Sabha returned the bill after a brief discussion, and Finance Minister Sitharaman's reply to questions raised by Members of Parliament on her budget proposals.

- IANS

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Reader Comments

S
Sarah B
The privacy point makes sense, but the compensation seems symbolic. If my locker rent is ₹2000 a year, I get ₹2 lakh coverage. That won't cover a fraction of what most middle-class families store. The system needs a rethink.
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Arjun K
Finally some transparency! 🎉 For years banks have been vague about this. At least now we know the exact rule. It's on us to not keep extremely high-value items if the cover is low. Maybe use a private vault service for that.
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Priya S
Respectfully, this policy is outdated. With inflation, the value of assets kept in lockers has gone up massively. A flat multiplier based on rent from decades ago doesn't work. FM Sitharaman should consider a committee to review this.
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Vikram M
Good move to protect privacy. No bank employee should know what's in my locker. The compensation is a standard safety net, not full insurance. People should understand the difference. For full value, get a separate insurance policy for your valuables.
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Kavya N
Most Indians keep important documents and some gold in lockers. ₹2-5 lakh cover might be okay for documents and a few ornaments, but not for serious jewelry. This news is an eye-opener. Time to check my bank's terms and conditions again!

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