Public sector banks (PSBs) reported zero locker thefts in FY26, according to data shared by the Finance Ministry in Parliament. The figures mark a sharp improvement after 40 locker theft cases were reported across PSBs over the previous four financial years.
While the latest data may reassure customers, an important question remains: What happens if valuables kept inside your bank locker go missing? Can the bank be held responsible? And how much compensation can you claim?
Here’s a simple guide to what the Reserve Bank of India’s (RBI) bank locker rules say.
Why is this in the news?
Minister of State for Finance Pankaj Chaudhary informed Parliament that no established locker thefts were reported by public sector banks in FY26. Between FY22 and FY25, PSBs reported a total of 40 locker theft cases.
As of March 31, 2026, public sector banks operated more than 1.11 crore lockers across the country.
The data comes nearly five years after the RBI introduced revised bank locker guidelines to strengthen customer protection and improve locker management.
When is a bank responsible for the loss of locker contents?
A bank cannot be automatically held liable for valuables kept in a locker. RBI guidelines suggest that a bank is liable only if the loss is attributable to its negligence or deficiency in service. this may include incidents like fire at the bank, burglary, theft, robbery, dacoity, building collapse or fraud by bank employees. But only if it is established that the bank did not take reasonable steps to safeguard the locker or the customer’s belongings, will the bank be responsible.
When is a bank not liable?
The RBI also clarifies that banks cannot be held accountable in each situation. Banks are generally not liable for loss caused by natural disasters such as earthquakes, floods or lightning, events outside their control or negligence by the customer. Your entitlement to compensation will depend on the facts of your case and whether you can prove that the bank was negligent or provided a deficient service.
How much compensation can you get?
Should the bank be held responsible for the damage, then the compensation is fixed to be equal to 100 times the yearly rent of the locker as per the RBI norms.
For instance, in case you pay a yearly locker rent of ₹3,000, the highest compensation that can be provided by the bank will be ₹3 lakh only.
Even if the value of the ornaments, documents, and other valuable items kept in the locker is more than this amount, the compensation would not exceed ₹3 lakh.
Do banks insure the valuables kept in lockers?
Banks do not know what customers keep inside their lockers. They also do not maintain an inventory of the contents.
For this reason, banks do not insure the jewellery, documents or other valuables stored inside lockers.
If you keep high-value items in a locker, you may consider buying separate insurance for those valuables.
It is also a good idea to keep purchase bills, valuation certificates and photographs of expensive jewellery or other valuable items. These documents can help if a dispute arises.
What security measures must banks provide?
To improve customer safety, the RBI has directed banks to follow several security measures under its revised bank locker guidelines. These include sending SMS or email alerts every time a locker is accessed, installing CCTV cameras in the locker area, maintaining proper records of locker operations, keeping a transparent waiting list for locker allotment, and offering nomination facilities to customers. These guidelines were issued in 2021 and came into effect on January 1, 2022.
What should you do if valuables go missing?
In case you find any items missing from your locker, notify the bank and lodge a written complaint against the branch.
Maintain copies of all correspondence with the bank. In case of any suspicion of theft or fraud, report to the police too.
If no resolution is found, you may seek assistance from the bank’s grievance redressal officer. Customers may contact the RBI Integrated Ombudsman in case of non-resolution of the complaint at the bank level.
The bottom line
The latest government data showing zero locker thefts in FY26 is encouraging for bank customers. However, using a bank locker does not mean your valuables are fully insured.
The guidelines by RBI very clearly mention that a bank is responsible for any loss if negligence is proved and the amount of compensation will be restricted to 100 times the annual rent of the locker. With such guidelines in mind, you should maintain a record of your belongings and opt for nomination facility.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
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Prabhat Gupta is Senior Copy Editor of Business Segment. He has worked across broadcast and digital newsrooms, editing and producing stories on politics, business, regulation and current affairs. His work has included writing on global markets and regulatory developments, along with long-form editorial content on business and governance.
He holds a master’s degree in Political Science from the University of Delhi and qualified UGC-NET in the subject, bringing an academic grounding to public affairs and policy coverage.
