Finance Minister Clarifies Locker Insurance Rules

Bank Locker Insurance Coverage Set at 100 Times Annual Rent​

New Delhi, March 30 – The standard insurance coverage for bank locker holders is set at 100 times the annual locker rent in case of any loss, according to Finance Minister Nirmala Sitharaman.

Standard Insurance Policy Details​

The Minister clarified that banks are not permitted to check or record the valuables kept by customers in lockers, citing banking regulations. This restriction prevents banks from offering insurance coverage based on the actual value of items stored. Any attempt to monitor locker contents would constitute a breach of privacy and existing rules.

As a result of this regulatory framework, a uniform policy has been established. Customers are entitled to compensation up to 100 times the annual locker rent in the event of loss, including theft or damage. Offering separate or differentiated insurance coverage for individual lockers is considered impractical under the current system. The Finance Minister stated that no proposals are currently under consideration to alter this arrangement.

Finance Bill 2026 Approved​

Meanwhile, the Parliament approved the Finance Bill 2026 earlier on March 25. The Lok Sabha had initially passed the bill with 32 amendments, followed by the Rajya Sabha returning the bill for a brief discussion and the Minister’s responses to questions raised by Members of Parliament regarding her budget proposals. The legislative process was completed, providing legal backing for the Union Budget 2026-27, effective from April 1.