The standard insurance coverage for bank locker holders is set at 100 times the annual locker rent, as stated by Finance Minister Nirmala Sitharaman. Banks are prohibited from inspecting or documenting the contents of lockers to comply with banking regulations, ensuring customer privacy. Sitharaman emphasized that due to this restriction, insurance coverage is based on a fixed amount rather than the actual value of stored items.
FM Sitharaman highlighted that any attempt by banks to monitor locker contents would violate privacy and regulations, leading to the establishment of a uniform compensation rule. Customers are entitled to compensation up to 100 times the annual locker rent in case of loss, such as theft or damage. Offering individual insurance coverage for each locker is deemed impractical under the current system, according to the finance minister.
No immediate plans exist to alter the current insurance arrangement, Sitharaman confirmed. The Parliament approved the Finance Bill 2026 earlier in the day, with the Rajya Sabha endorsing it through a voice vote, finalizing the legislative process for the Union Budget 2026-27 proposals to take effect from April 1. The Lok Sabha passed the bill on March 25, incorporating 32 amendments, while the Rajya Sabha returned it after a brief discussion and Sitharaman’s responses to queries from MPs on budget proposals.
