Is a bank liable if the contents of my locker are lost or damaged?

Question

My bank locker was affected by water seepage and some of my jewellery got damaged. Is the bank responsible for compensating me? What I am unsure about is the procedure — where the application goes, what it costs, and how long bank locker liability matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

MyVakeel Legal Desk · Accepted Answer

The law that applies to bank locker liability here is RBI Revised Guidelines on Safe Deposit Lockers 2021, Indian Contract Act 1872, Section 151 and Section 152 and Consumer Protection Act 2019. The detail below matters, because RBI Revised Guidelines on Safe Deposit Lockers 2021 draws the line differently depending on what your documents show.

RBI's revised locker guidelines, following the Supreme Court's directions in a 2021 case, clarify that banks cannot escape liability entirely through locker agreement clauses, and must exercise due care as a bailee under the Indian Contract Act.

Under Sections 151 and 152 of the Contract Act, a bailee must take as much care of goods bailed as a person of ordinary prudence would take of their own goods of similar quality and value, and is liable for loss due to negligence.

RBI guidelines cap the bank's liability at 100 times the annual locker rent in cases of fire, theft, building collapse or fraud by bank employees, but this cap does not apply if the loss is due to the bank's own negligence, such as structural or maintenance failure.

For losses caused due to natural calamities like earthquakes or floods that are Acts of God, banks are generally not liable, but they must clearly disclose such exclusions in the locker agreement.

Banks must also mandatorily record locker operations on CCTV, maintain the footage for 90 days, and inform customers of any incidents affecting the locker facility, failing which they can be held liable for deficiency in service.

What this means for you: 1) Immediately inform the bank in writing about the damage and get a joint inspection report of the locker; 2) Ask the bank for CCTV footage and maintenance records around the period of the incident; 3) Assess whether the damage arose from bank negligence, such as poor maintenance, to argue beyond the standard liability cap; 4) If the bank denies fair compensation, file a consumer complaint citing RBI's locker guidelines and Sections 151/152 of the Contract Act.

Where the facts are disputed, what usually decides a bank locker liability matter is the paper trail — dated complaints, acknowledgments and written replies under RBI Revised Guidelines on Safe Deposit Lockers 2021. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in banking law.