New Delhi, March 30 Banks cannot see or record what valuables customers store in lockers, as this would violate banking regulations, Finance Minister Nirmala Sitharaman said on Monday, ruling out differential insurance coverage based on the contents.
Sitharaman was responding to a supplementary question raised by Congress leader and MP from Gadchiroli–Chimur constituency, Namdeo Dasaram Kirsan, in the Lok Sabha during the Question Hour.
"Sitting and observing a client's disclosure of what valuables he intends to keep in the locker is a violation of banking rules, and banks would not do that, so it cannot be a basis for me to decide whether there should be differential coverage," she said.
The finance minister further stated that the standard coverage for locker holders is fixed at 100 times the annual locker rent in case of any loss. This is because banks cannot inspect or evaluate the contents of lockers, making it impractical to provide insurance based on actual value, she added.
"It is not possible to do this for each locker separately, so it has been decided that 100 times is provided in case of any loss, whether there is a loss due to a broken locker or something like that. At the moment, there is nothing before me for any other consideration," she explained.