Finance Minister Nirmala Sitharaman confirmed that banks cannot inspect or record what valuables customers store in lockers, as it would constitute a breach of banking regulations. According to reports from IANS, Sitharaman stated during the Lok Sabha Question Hour that 'sitting and watching the disclosure of a client of what valuables he is going to keep in the locker is a breach of banking rules, and banks wouldn't do that'. This regulatory constraint prevents differential insurance coverage based on locker contents, as the minister explained that banks cannot evaluate individual locker contents for insurance purposes. Any attempt by banks to monitor what customers store in lockers would amount to a breach of privacy and rules.
The finance minister clarified that the standard coverage for locker holders remains fixed at 100 times the annual locker rent in case of any loss. As reported by IANS, Sitharaman explained that 'for each one of them (lockers) separately, it is not possible, so it is decided that 100 times is what is given for any loss if there is a loss, if there is a locker breaking loss or something like that'. She emphasized that this uniform coverage applies to all locker holders regardless of the actual value of contents, as banks cannot inspect or evaluate individual locker contents to provide insurance based on actual value. The minister added that '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' and that offering separate or differential insurance coverage for each locker is not practical under the current system.
The clarification came in response to a supplementary question raised by Congress leader Namdeo Dasaram Kirsan from Gadchiroli-Chimur constituency during the Lok Sabha Question Hour. According to IANS, Sitharaman's statement rules out any consideration of differential insurance coverage based on locker contents, maintaining the current uniform coverage structure across all bank locker facilities. The minister's response addresses the practical limitations banks face in evaluating individual locker contents for insurance purposes, with the finance minister explicitly stating that 'banks cannot inspect or evaluate the contents of lockers, making it impractical to provide insurance based on actual value'. She added that 'as of now, there is no proposal under consideration to change this arrangement'.
The locker insurance clarification gains additional significance as it comes alongside the completion of the legislative process for Union Budget 2026-27. As reported by IANS, the Parliament approved the Finance Bill 2026 on Monday, with the Rajya Sabha returning it to the Lok Sabha by a voice vote, completing the legislative process. The Lok Sabha had passed the bill on March 25 with 32 amendments, and the Rajya Sabha returned the bill after brief discussion. Finance Minister Sitharaman's clarification on locker insurance provides the necessary regulatory framework for the standard coverage structure to take effect during the new financial year beginning April 1, ensuring legal backing for the current uniform insurance arrangement across all bank locker facilities.
