Trying to get a bank locker? Here’s why you may be turned away
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that space limits, compliance costs and low margins are pushing banks to restrict lockers, and pointed out that RBI rules bar linking allotment to financial products beyond a deposit covering three years' rent and charges.
What Abhishek Kumar said
Why is it so hard to get a bank locker now?
There is a gap between demand and supply. Demand has gone up as affluent Indians have more purchasing power and own more gold, while banks are deliberately limiting new lockers to manage liability risks and compliance burdens, and because the service earns them little. In metros the problem is sharper, because branch space is limited and real estate is expensive.
Can a bank make me open a fixed deposit or buy insurance to get a locker?
No. RBI does not allow banks to make a locker conditional on buying any financial product. A bank can take a fixed deposit equal to three years' rent and the charges for breaking the locker open, held as security, but it cannot insist on extra FDs or insurance. In practice, some branch staff still favour customers who buy a financial product from the bank when allotting lockers, even though the rules do not allow allotment to be tied to such purchases.
What has changed in RBI's locker rules in recent years?
Between 2023 and 2025, RBI brought in major changes: compulsory biometric access, continuous CCTV recording, SMS or email alerts each time a locker is opened, and fresh written agreements in place of the old informal arrangements. Banks also have to keep transparent waiting lists and show locker availability online, which adds to their compliance costs.
Will banks add more lockers, and what can I do if I cannot get one?
I don't expect banks to expand locker capacity, because low margins, high compliance costs and limited branch space make the service unprofitable. With fewer lockers, higher rents and bank liability capped at 100 times the annual rent, access is becoming a privilege tied to relationships or products, and middle- and lower-income customers feel it most. Private locker services and vaults, with round-the-clock access, security and insurance, are an alternative.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on money management
The article explains why bank lockers have become hard to get in India, as demand far outstrips supply and banks limit new allotments. It covers RBI locker rules introduced between 2023 and 2025, the ban on tying lockers to other products, and alternatives for those who cannot get one.
Publisher source
Trying to get a bank locker? Here’s why you may be turned away