SAFE CUSTODY SERVICES AND SAFE DEPOSIT LOCKERS · The following are the important steps in letting out the safe deposit lockers. Page No. I. Procedure for letting out safe deposit

ANDHRA PRAGATHI GRAMEENA BANK ::

HEAD OFFICE :: KADAPA

Circular No.204-2007-BC-ITSD. Date. 04.10.2007

SAFE CUSTODY SERVICES AND SAFE DEPOSIT LOCKERS

The facility of 'Safe Custody' by way of 'Acceptance of Articles for Safe Custody' or

'Providing The Facility of Safe Deposit Vaults', is one among other General Utility Services

rendered by banks. Our Bank is also providing safe deposit lockers’ facility to customers in

good number of branches and there are proposals to extend the facility in some more

branches depending upon the demand for lockers.

In order to bring uniformity in post amalgamated scenario, detailed operational guidelines

along with the documents to be obtained are furnished through this circular.

Therefore all the staff members are advised to go through the circular and follow the

guidelines scrupulously to ensure perfect and smooth functioning.

Clarifications if any, required, may be sought from IT & S Department, Head Office.

(M.OBULESU)

CHAIRMAN

Cont…2

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Circular No.204-2007-BC-ITSD.Date. 04.10.2007

The following are the important steps in letting out the safe deposit

lockers.

Page No.

I. Procedure for letting out safe deposit lockers. 3 - 5

1. Waiting list.

2. Allotment.

3. Procedure for hiring lockers,

4. Security deposit.

5. Rent in advance.

6. Collection of rent and handing over the keys/

7. Vault Register.

II. Operation of lockers. 6

III. Daily inspection by the Officer-in-charge/Custodian. 6

IV. Expiry of lease and renewal. 7

V. Surrender of lockers. 7

VI. Search of safe deposit lockers and vaults by officers of the

Income-tax department.

7

VII. Breaking open the locker at the request of the locker hirer. 8

VIII. Breaking open the locker for non-payment of annual rent. 8

IX. Auctioning the contents not claimed. 10

X. Nomination pertaining to safe deposit lockers facility. 11

XI. General instructions. 12

Annexures – 1,2,3,4&5 14

Cont…3

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I. PROCEDURE FOR LETTING OUT SAFE DEPOSIT LOCKERS

1. Waiting List:

Branches shall maintain a waiting list for the purpose of allotment of lockers. All such

applications received for allotment of a locker shall be acknowledged and given a waiting list

number. The waiting list may be maintained in an exercise book.

2. Allotment:

At least 80% of lockers should be allotted to customers on first-come-first-serve basis.

Branch Managers’ at their discretion may allot the remaining lockers to valued customers on

business considerations.

3. Procedure for Hiring Lockers:

When any person desires to take on hire a locker, he may be furnished with a copy of the

rules governing the Safe Deposit Vaults (vide Annexure-1) and after perusing the same, if he

is agreeable to all the conditions, he should furnish the following:

(a) Obtain agreement from the customer duly affixed with requisite value of adhesive

stamps.

(b) If customer desires to appoint any other person as deputy and agent to have access to

the locker covered by the aforesaid memorandum, the authorisation in that behalf

should be submitted along with the specimen signature of such deputy.

(c) In the case of lockers, hired in joint names, the agreement should be signed by all the

joint hirers. Besides, all the joint hirers should also execute a mandate, authorising the

operation of the locker by any one or more of them.

(d) Lockers should not be let out for commercial use, and in cases of request for the

facility by any partnership firm/Private or Public Limited Companies, prior

permission from HO: IT & Services Department through respective Regional Office

should be obtained by duly obtaining an undertaking from such firm/company that

they would not utilise the facility/operate the locker for commercial purposes and

their operations would not hinder the functioning of the branch.

4. Security deposit.

For covering the eventuality of breaking open of lockers for non-payment of

locker rent, a Security Deposit with a minimum of Rs. 5,000/- should be

obtained.

Locker security deposit in the form of term deposit such as FD/PCCs should be obtained.

The term deposit will carry interest applicable on the date of deposit. Duly discharged term

deposit should remain with the branch till the party enjoys locker facility.

Cont…4

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For obtaining security deposit branches should follow the procedure laid down in Cir.No.

95/-2007-BC-ITSD dt.22.05.2007. Lien should be marked in the deposit a/c and discharged

deposit receipt be held along with documents.

5. Rent in advance

Branches have to collect one-year rent in advance.

6. Collection of Rent and Handing over the Key:

(a) Locker rent at the rates fixed by Head Office from time to time shall be collected.

The rates vary according to the size of the lockers and revised rates are as furnished

here below.

Amt. in. Rs.

Category /

Type of

locker

Approximate size of

locker

Existing Rent Revised Rent

1. Small 5”X7.2”X20.08” 400+ST 400+ST

2. Medium 5”X14.4”X20.08” 700+ST 800+ST

3. Large 11.12”X14.4”X20.08” 1200+ST 1500+ST

4. Very large 12.88X17.36”X20.08” 1600+ST 2000+ST

Effective date of new rents:

New customers w.e.f. 01.10.2007

Existing customer w.e.f. 01.01.2008

Applicability of new rents:

[ I ]. The rates fixed as per above schedule shall be effective immediately

from the date of renewal of locker units that falls due on or after 01.01.2008.

[ii]. Branches should exhibit a general notice for the information of our

customers / locker hirers in the Notice board ( as per annexure – 5).

[ iii ]. In addition Branches should issue letters to individual locker hirers ( as per

annexure-4)intimating about the revised locker rental w.e.f. 01.01.08. According to

guidelines the renewal rent has to be paid 30 days in advance from the due date.

Hence the intimation/due notice has to be sent 40 to 45 days in advance to the

address on record, preferably under Certificate of Posting. Proof of dispatch

/delivery shall be , however preserved in the locker file.

(b) The first year's rental has to be collected in advance and credited to "Locker Rent

A/c".

Cont…5

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(C) Collection of annual rent:

( i ) Period of reckoning :

The annual rent due for any locker shall be collected on a calendar year basis as at 1st

January of every year instead of on the anniversary day of its falling due reckoned

from the date of hiring out the locker.

The advance rent is normally for a period of one year, but could be slightly variable,

as stipulated in point No. (ii) below.

(ii). Collection of rent for the broken period:

For locker hired out in the middle of the year

(a). If it is hired out between 1st January and 30

th June of the year, the rent

for the broken period from the date of the hiring the locker till 31st December

shall be collected on a pro-rata basis. If the hirer is agreeable, the rent due for the

period until next December end could also be collected. For the purpose of collection

of rent fraction of a month will be treated as full month.

(b). If it is hired after 30th

June, rent for the entire period from the date of hiring till 31st

December next year shall be collected in advance on a pro-rata basis. In this case, it

would be for a period more than one year.

A suitable notice may be served to the existing hirers indicating the above changes and

collect additional rent payable up to the end of December 31st 2008. However in the case of

those lockers where the rent is already paid for one full year and now will fall due for

payment some time during the course of the year 2008 only, further collection of rent up to

the end of December 2008 could be deferred until the rent falls for due next year.

(c) If the hirer chooses to surrender the Locker Key before completing one year, the rent

paid for the period up to one year shall not be liable for refund but if the rent is paid

for the period over one year and the key is surrendered after one year proportionate

rent may be refunded for the remaining period in full months only. As a matter of

policy of the Bank, no concession will be granted in locker rent to valued

customers/staff members.

7. Vault Register:

The safe deposit vault register (OB.29) should then be written up, allotting one page for each

hirer. The details furnished therein should be carefully checked up and specimen signature of

the hirer and deputy if any, should be obtained at the places provided for. The locker accounts

may be given serial numbers year-wise like 1/2007, 2/2007 so on.

Cont…6

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II. OPERATION OF LOCKERS

1. Every time the hirer desires to operate the locker, the date of operation and his

signature with time etc., should be entered in the Vault Register. Care should be

taken to verify the signature with specimen lodged before permitting operations on the

locker in order to avert any unauthorised person entering or operating the locker with

the resultant consequences arising out of negligence of the bank. No person other than

the locker-holder and/or deputy authorised to operate the locker signing the locker

register, be allowed to enter the locker room while operating the locker.

2. While operating the locker, the custodian should operate the Master Key after

verifying the locker number. The hirer should now be asked to open the locker with

his key and once the locker is opened, the custodian may leave the vault. At no point

of time, the locker holder's keys are to be taken possession by the custodian.

3. Before the customer leaves, it should be ensured by the custodian in the presence of

the hirer that the locker is duly locked and it cannot be opened again except with the

use of Master Key.

III. DAILY INSPECTION BY THE OFFICER-IN-CHARGE/CUSTODIAN

1. At the end of each day, the Officer-in-charge of lockers should go round the strong

room/locker room where the lockers are kept and inspect each and every locker that

has been operated during the day to ensure that they have been locked properly, and

no customer is left behind. He should give a certificate to this effect in the register

kept for the purpose. No person other than the custodian and joint custodians are

allowed to enter the locker room.

2. Lockers found open:

Whenever it is noticed that a locker has been left open by the hirer, the matter should

be informed to the Branch Manager immediately. The hirer should be contacted and

in the meantime an inventory should be taken up with the locker in the presence of

Head of Branch and an Officer. The contents of the locker should be transferred to

another locker or kept in other safe place under dual custody of the Head of Branch

and an officer.

When the hirer calls on the branch, the contents of the locker should be handed over

to him against a proper receipt.

3. Articles Left Behind in the Vault:

If some articles are found lying in the vault, the Head of Branch should be informed

immediately and the articles, after conducting an inventory, should be kept in Safe

Custody along with a list of lockers, which were operated on that day.

Cont…7

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When a hirer intimates that some article(s) is/are missing from his locker, he should

be asked first to describe the articles in detail. On being satisfied that the description

tallies with that of the article(s) found in the vault, they should be handed over to him

against a proper receipt and Indemnity.

IV EXPIRY OF LEASE AND RENEWAL

1. As and when branches let out lockers, the due dates (expiry of lease) are to be

diarised. Notices demanding payment of rent for further period to be sent to the hirers

30 days in advance and branches should see that rent is collected before the due date.

It should be ensured that the locker agreement should have been renewed on payment

of rent for further period.

2. If the payment is not forthcoming in spite of repeated reminders and within two

months of the expiration of the term of agreement, then the branch should issue Regd.

Acknowledgement Due Notice calling upon the hirer to pay the arrears of rent within

15 days of receipt of the notice, failing which, the bank would be constrained to break

open the locker at the entire risk and responsibility of the locker hirer as to costs and

consequences.

3. If payment of rent is not forthcoming even after sending the Regd. Notice, then the

branch may proceed to break open the locker after getting permission from Head

Office.

4. On default in payment of annual rent, they shall not be allowed to operate the locker

till the rent in arrears is paid including the advance rent

V SURRENDER OF LOCKERS

If the locker is to be released, the key should be surrendered to the bank paying all arrears of

rent, if any, and the hirer should sign the safe deposit vault register at the place provided for.

{Provided that where one or more of the joint locker hirers is/are unable to be present in the

branch for surrender of the locker, such joint hirers shall authorise jointly or severally such of

those joint locker hirers who will be physically present in the branch for surrender of the

locker key and for signing the concerned register.}

VI SEARCH OF SAFE DEPOSIT LOCKERS AND VAULTS BY OFFICERS OF THE

INCOME-TAX DEPARTMENT

The Commissioner of Income-tax has been empowered by Law to authorise entry into and

search of any building or place where he has reason to believe that secret documents,

duplicate accounts, unaccounted cash, bullion, jewellery or other valuable articles are kept.

Bank lockers and vaults may be searched under these powers.

Cont…8

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Notes for the information and guidance of Managers and other Officers in charge of branches

providing safe deposit vaults regarding search of safe deposit vaults and lockers by officers of

the Income-tax Department are given in Annexure-2.

It should also be noted that when an authorised official of the Income-tax Department armed

with the appropriate authority to carry out search, visits the bank he should be given all

possible co-operation. Branches should, however, take care to satisfy themselves before the

search proceeds that the person(s) visiting them are the authorised officials of the Income-tax

Department and their credentials are to be duly verified before parting of the information.

VII BREAKING OPEN THE LOCKER AT THE REQUEST OF THE

LOCKER HIRER

When the locker hirer reports the loss of the key, a letter to that effect should be obtained

requesting the bank to break open the locker and undertaking to reimburse the amount of

expenditure involved in breaking open the locker and in repairing and replacing the lock and

key. The letter should be forwarded to Regional Office with recommendations of Branch

Manager. Regional Office should accord permission after contacting the manufacturer of the

locker. Approximate amount of expenditure shall also be collected in advance.

1. The locker should always be opened in the presence of the locker hirer.

2. The assistance of the manufacturer of the concerned locker shall be obtained in order

to open the locker with least damage. Lockers should not be opened with the

assistance of local locksmiths.

3. Immediately after the locker is opened, a letter signed by the locker hirer should be

obtained saying that contents of the locker are found proper and intact.

4. After getting the acknowledgement of the locker hirer, the contents of the locker so

found shall be handed over to the locker hirer. However, before parting with the

contents so found, all the charges incurred by the bank in connection with breaking

open of the safe deposit locker as well as the cost of new lock fixed shall be collected.

5. A Report to that effect shall be sent to Head Office/under a copy to Regional Office

for their information.

6. Correspondence/documents/acknowledgements relating to above operations should be

preserved properly.

VIII BREAKING OPEN THE LOCKER FOR NON-PAYMENT OF

ANNUAL RENT.

1. A notice shall be sent to the last known address of the locker hirer 30 days before the

expiry of the term of the contract demanding the payment of the rent for a further term

as per the contract.

Cont…9

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2. If the payment is not forthcoming even after the due date, the branch should send a

Registered Notice with A.D. calling upon the hirer to pay the rent within 15 days of

the receipt of the notice and informing that on failure to do so the bank will be

constrained to break open the locker at the entire risk and responsibility of locker hirer

as to costs and consequences.

3. If the payment is not forthcoming within 15 days as mentioned above, the branch may

proceed to break open the locker, after getting the permission from Head Office

through Regional Office.

4. Acknowledgement of notice should be held for record purposes and when the notice

is returned un-served for any reason, the postal cover received back should be held in

tact.

5. Even in cases where the notice sent as stated above is returned un-served for any

reason, the bank may proceed in the manner indicated below:

(a) There is no need for Newspaper publication before breaking open of locker.

(b) Permission from the Head Office shall be obtained by the branch for displaying notice

on the notice board of the branch and also to break open the locker.

(c) After receipt of this permission from Head Office/Regional Office for their

information, a notice as per Annexure-3 shall be displayed on the notice board of the

branch.

(d) After the expiry of the period mentioned in the notice, branch shall proceed to break

open the locker.

6. The locker should be opened in the presence of at least two independent and

respectable witnesses.

7. The assistance of the manufacturer of the concerned locker shall be obtained in order

to open the locker with least damage. Locker should not be opened with the

assistance of local locksmiths.

8. After the locker is opened, an inventory of the contents of the locker should be

prepared (with details) signed by the Head of Branch/Officer and witnesses.

9. The articles so found in locker should be kept separately in a box duly packed in a

cloth by stitching and sealing with lac duly embossed with Bank monogram. The

details such as Locker Number, Date of Break-open, Name of the locker-hirer etc. be

noted in the packet and the same is held under dual control in the safe room.

Cont..10

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10. When the locker hirer or his legal representatives in case of his death, (on

submission of proof that they are his legal representatives) claim the contents of

the safe deposit locker, the same may be handed over to the hirer/his legal

representatives against acknowledgement and after receiving hire charges and

the expenses incurred to the bank in connection with breaking open the locker,

repairing, replacing and other charges.

IX AUCTIONING THE CONTENTS NOT CLAIMED

1. When the locker hirer or his legal representatives do not make a claim over the

contents of the locker, the same may be auctioned after getting the permission of the

Head Office through Regional Office.

2. While seeking the permission for auctioning the contents of the locker, the branches

should furnish to Head Office through Regional Office. The full particulars and

market value of the contents of the locker and amount due by the locker hirer

inclusive of cost of breaking open of the locker and other charges. Depending upon

the contents and market value of the contents, the Head Office (under intimation to

Regional Office) at their discretion shall instruct the branches to issue a second public

notice before auctioning the contents of the locker as a measure of abundant caution

and to get the maximum price in the auction. Head Office (under intimation to

Regional Office) shall furnish the format of the second public notice.

3. After getting the permission from Head Office and after publishing the notice on the

notice board of the branch wherever applicable, the branches shall sell the contents of

the locker in public auction. Wherever the cost of articles found in the break-open

locker is much more than the dues to the Bank, only a portion of articles covering the

value to the extent of our dues may be taken up for auctioning and the remaining

articles need be separately kept in a box as furnished here under.

The articles so found in locker and remaining items after Auction, should be kept

separately in a box duly packed in a cloth by stitching and sealing with lac duly

embossed with Bank monogram. The details such as Locker Number, Date of

Break-open, Name of the locker-hirer etc. be noted in the packet and the same is

held under dual control in the safe room.

4. Head Office and Regional Office should be kept informed about the developments at

periodical intervals (i.e., breaking open of the locker, publishing notice on notice

board , about auctioning of the contents etc.).

5. Correspondence/documents/acknowledgements relating to the above operation should

be preserved properly.

6. Doubts/clarifications, if any, may be referred to/had from Head Office/ Regional

Office.

Cont…11

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X NOMINATION PERTAINING TO SAFE DEPOSIT LOCKERS

1. Who Can Nominate?

(a) Individual (including a non-resident) who is sole hirer of a locker. The nomination

shall be in the form specified.

(b) Two or more individuals (including non-residents) jointly. The nomination to be made

by such hirers shall be in the form specified.

2. Where the Locker is in Minor's Name:

Where the locker is hired in the name of a minor, the nomination shall be made by

such a person legally entitled to act on behalf of the minor.

3. Who can be nominated?

(a) Nomination shall be made favouring one individual only.

(b) Nomination can be made favouring a non-resident also.

(c) Non-resident depositors can appoint a resident as a nominee.

(d) A minor can also be appointed as a nominee.

4. Where the Nominee is a Minor:

Where the nominee is minor, the depositor may, while making nomination, appoint

another individual not being a minor, to receive the said articles on behalf of the

nominee in the event of death of the depositor during the minority of the nominee.

5. Cancellations and Variation:

(a)The cancellation of the said nomination to be made by the sole hirer or as the case

may be, joint hirers of a locker, shall be in the form specified.

(b)A variation of the said nomination to be made by the sole hirer of a locker shall be

in the form specified.

(c)A variation of said nomination to be made by the joint hirers of a locker shall be in

the form specified.

(d)A nomination, cancellation of nomination or variation of nomination shall be made

as aforesaid at any time during which the locker is under hire.

6. Acknowledgement:

Branch shall acknowledge in writing, to the sole hirer or joint hirers, the filing of the

duly completed relevant form of a nomination or cancellation of nomination or

variation of nomination, as the case may be, in respect of locker so hired.

Cont…12

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7. Registration:

The duly completed relevant form of nomination or cancellation of nomination or

variation of nomination filed shall be registered in the books of the branch.

8. Delivery of Contents to the Nominee after Death of the Locker

Hirer(s):

(a) A declaration in the prescribed format shall be obtained from the nominee when he

comes to file a claim on the strength of the nomination given in his favour.

(b) In the case of lockers hired jointly, the contents of the lockers are allowed to be

removed jointly by the nominee/s and the survivor(s) after an inventory is taken in the

prescribed manner. After such removal preceded by an inventory, the nominee and the

surviving hirer(s) may still keep the entire contents with the branch, if they so desire

by entering into a fresh contract of hiring a locker.

(c) Where the nominee is a minor, the branch should ensure that when the contents of

the locker are sought to be removed on behalf of the minor nominee, the articles are

handed over to a person, who legally, is competent to receive the articles on behalf of

the minor.

(d) Banks are not required to open sealed/closed packets found in locker while

releasing them.

(e) Application by non-resident nominees for taking out of India the articles held in

safe lockers by deceased residents/non-residents should be referred to Reserve Bank

of India for prior permission.

9. The nomination letters etc., should be kept duly filed along with the locker

agreements.

XI GENERAL INSTRUCTIONS

1. Joint Custody of the Keys of the Safe Deposit Vault and Lockers:

(a) Keys of the Vault:

The main outer door of the safe deposit vault has a double lock, just as in the case of office

safes and the two keys will have to be separately held by two officers (Joint Custodians) and

at the time of opening and closing of the main outer door of the vaults every time, both

should be present.

Cont…13

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(b) Original Keys of Lockers:

Both the original keys of every locker i.e., the key meant for the hirer and the master key, in

respect of all lockers not let out shall be held in the safe of the bank, under joint custody.

The details of the un-allotted lockers and their keys are to be recorded in a register

separately for verification by the inspectors/executives during the branch inspection/visit.

(c) Duplicate Master Key:

Duplicate master key of the lockers shall be put in a box with a note and the box shall be

sealed by the Head of Branch and deposited for safe custody along with the duplicate keys of

the vault in the same manner as the duplicate keys of the safes. All the regulations detailed

regarding the withdrawal and redeposit of the sealed packets of duplicate keys of the safes

shall also be applicable to the sealed packets containing the duplicate master key.

2. Hiring of Lockers by Managers, Officers and Other employees:

Head of Branch, Officers and other staff members of the bank are prohibited from hiring

lockers jointly with any of our clients. They may be joint hirers only in case the locker is

taken jointly with a member of the family of the staff member concerned i.e., spouse, parents,

sons or daughters etc. In the case of Head of Branch, prior approval of Controlling Office

should be obtained before taking any locker in his own name or in joint names of the Head of

Branch and any member of his family. In the case of other officers and staff, whenever they

take any lockers either singly or jointly with any of the members of their family, branches

should report the matter to Regional Office and seek their approval for the same.

3. Delivery of Valuables Upon Death:

In the case of Lockers, on notice of death of the locker - hirers nobody shall be permitted to

open and operate unless the lockers hired jointly by more than one person and the same is

operated by either. A claim application shall be obtained as in the case of claim to the

deposits. By obtaining permission from H.O.PDS Department through concerned Regional

Office.On satisfaction about the genuineness of the claim the locker shall be opened in the

presence of a witness and in presence of the legal heirs. For this purpose the legal heirs may

authorise one or more of them to be present and to receive the contents of the lockers. The

contents of the locker shall be delivered to the legal heirs under their joint discharge in the

presence of the witness.

Wherever it is felt that an indemnity must be obtained from the legal heirs, the contents of the

locker must be approximately valued and an indemnity bond obtained accordingly for the

said valuation as per procedure laid down in the case of depositor.

All claims in respect of lockers shall be referred to the Head Office PDS and permission be

obtained for the purpose of releasing contents to the legal heirs.

@@@@

Cont…14

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Annexure – 1

RULES GOVERNING SAFE DEPOSIT VAULTS

1. Access to Safe Deposit Vault containing the lockers may be had on any working day

during the usual business hours, published in the Bank's Notice Board.

2. The Bank will grant access to the hirer or to the duly appointed agent of the hirer

provided the authority in favour of such agent is duly advised to the Bank in writing and

acknowledged. On the death of the Hirer, nominee, legal heirs, executors or administrators

will be allowed access. In the case of more than one Hirer, the Bank shall grant access to

either or any one of them, their survivor or survivors and the duly appointed agent or agents

of such Hirers, their survivor or survivors and the executors or administrators of the last

survivor. The Bank shall not be obliged to allow access to any other person or persons.

3. The charges are payable strictly in advance and the hirer/s by paying the rent agreed

can have the locker on hire as long as he pleases, subject to clause 5 here below.

4. The Hirer should acknowledge receipt of one key of the said locker and shall

surrender the same to the Bank upon the termination of the agreement.

5. The Bank may terminate the agreement and require the vacation and surrender of the

locker and the keys thereof at any time forthwith upon notice being posted or sent to the Hirer

notwithstanding that the period thereof shall not have expired. Upon the locker being vacated

and the keys surrendered pursuant to such notice, the Bank will return to the Hirer the

proportionate charges (if paid in advance) for the non-expired period.

6. The Bank shall have a lien or charge upon all property in the locker for the charges

due by the Hirer to the Bank under the agreement with power from time to time to sell such

property or portions thereof for the purpose of realising such moneys.

7. All repairs or other works required to be done to the lock of the locker or the keys

shall be done exclusively by Workmen appointed by the Bank.

8. If any key of the locker is lost, the Bank should be notified without delay. All charges

for opening the locker, replacing the lost key and/or changing the lock shall be payable by the

Hirer.

9. The Hirer shall not be entitled to assign, transfer or let out the locker or any part

thereof or the benefit of the agreement and any such assignment, transfer or subletting shall

be void.

10. The locker shall be used for the deposit of valuable and other property except those of

an explosive or destructive nature.

11. During extraordinary contingencies like civil commotion, riots and other occurrences,

the Bank reserves the right of closing Safe Deposit Department for such time as may appear

necessary to them without any previous intimation to the hirer and any notice published on

the Bank's Notice Board is deemed to be notice to the hirer.

Cont…15

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12. The Hirer should agree to indemnify and save harmless the Bank from and against

any and all claims and demands made against the Bank by reason of any act of any Agent

appointed by the Hirer as aforesaid and the Bank shall not incur any liability by virtue of their

permitting such agent access to the said locker.

13. Any notice or communication sent by post to the last known address of the Hirer shall

be considered to have been duly served. The Hirer shall from time to time notify to the Bank

of his address and of any change in such address, which will be recorded for future use for

sending notices.

14. The Hirer shall abide by all such rules and regulations concerning the means of access

to the locker and the identification of the Hirer or his Agent or Agents and generally

concerning the means and methods of carrying out the Agreement as may from time to time

be prescribed by the Bank.

15. The Bank shall be at liberty to alter the hours of access provided in the agreement and

to add or to alter and vary the conditions thereto and immediately on such additions,

alteration and variation being made, the Hirer shall be deemed to have notice of the contents

and shall be bound by the terms thereof.

16. On the termination of the agreement, the Bank shall be at liberty if the Hirer fails to

comply with the provisions therein contained for the vacation and surrender of the locker, and

the key thereof to break open the locker, and either to forward by such means as they may

select, the contents thereof to the Hirer or at the Bank's absolute discretion to retain and keep

the said contents in such place as they may think fit at the risk of the Hirer and to charge a fee

for such custody.

17. The Bank shall not be liable for any loss or damage to the contents of the locker

arising from any cause whatsoever.

18. The Safe Deposit Department is a separate department of the Bank and has no

connection with the dealings of customers in other Departments of the Bank.

19. It is to be agreed that the relation between the Bank and the Hirer is not that of Banker

and Customer, but that of Lessor and Lessee.

20. If by any act, writ, decree or process of any court against any person having right of

access to a locker/box the Bank is forbidden to allow the locker/box to be opened by such

person the locker/box may be closed to every one, though the lease has been made to two or

more, until such act, writ, decree or process is annulled. The Bank will refuse access to the

locker at any time until all charges connected with the locker have been paid.

~~~~~~

Cont…16

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Annexure – 2

SEARCH OF SAFE DEPOSIT LOCKERS ANDVAULTS BY OFFICERS OF

THEINCOME-TAX DEPARTMENT

Notes for information and guidance of Heads of Branches/Branch Managers:

1. In order to unearth unaccounted cash and assets acquired with income concealed from

taxation, the Commissioner of Income-tax has been empowered by Law to authorise entry

into and search of any building or place where he has reason to believe that secret documents,

duplicate accounts, unaccounted cash, bullion, jewellery or other valuable articles are kept

(Section 132 of the Income-tax Act). Since one of the places where such incriminating items

are usually kept is the safe deposit locker or vault hired from a bank, search warrants are

often issued by the Commissioner for searching bank lockers and vaults.

2. The search warrant, when issued, authorises one or more officers of the Income-tax

Department to carry out the search and seize, where considered necessary, accounts,

documents, cash etc. discovered as a result of the search. The names of the officers so

authorised will be clearly mentioned in the warrant and they are known as Authorised

Officers.

3. The place to be searched will also be clearly mentioned in the warrant. In the case of

a warrant issued for the search of a safe deposit locker, the name of the bank hiring out the

locker and its address will be mentioned in the warrant at the appropriate place. The warrant

will bear the signature of the Commissioner with date and also his office seal [Rule 112(2)].

4. When such a warrant is presented to the concerned Bank Official, the official is

enjoined by law to afford all facilities to Authorised Officer(s) for carrying out the search

[Rule 112(3)].

5. Where the key of the locker is readily made available by the hirer to the Authorised

Officer, the search will be carried out immediately. If however, the key is not forthcoming

the Authorised Officer has power to break open the locker and search it. Nevertheless, he

would not ordinarily do this without giving a reasonable opportunity to the hirer to produce

the key unless he has reason to believe that the key is being intentionally held back by the

hirer to gain time.

6. When the authorised officer decides to postpone the opening of the locker, he will

proceed to seal it and serve a prohibitory order on the Bank official under section 132 (3) of

the Income Tax Act directing that the locker should not be opened or allowed to be opened

without the knowledge and written permission of the Authorised Officer and on such

conditions as he may prescribe. Apart from ensuring the interests of revenue, this is done to

enable the Bank Official to refuse the hirer access to the locker if he insists on clandestinely

opening it by exercising his rights under the hire contract subsisting between him and the

Bank [Rule 112 (4B)].

Cont…17

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7. If even after giving a reasonable time to the hirer to produce the key, it is not made

available, the Authorised Officer will proceed to break open the locker under the powers

vested in him by the search warrant. In doing so he will to the extent possible, endeavor to

secure the assistance of the Manufacturers of the concerned locker to have it opened with the

least possible damage but if such assistance is not forthcoming, he will necessarily have to

get it opened with the help of such locksmith as is readily available [Rule 112 (4A)].

8. Whether the opening is done in the normal course or by force, it will be done in the

presence of at least two witnesses. The search that will be done after the opening will also be

witnessed by the same persons. The hirer of the locker will be invited to witness the search

but his presence is not essential. After the search, the Authorised Officer will prepare a

'Panchanam' setting out briefly all that has been done including where necessary, the

circumstances under which it becomes necessary to break open the locker. The Authorised

Officer and the witnesses will duly sign this and a copy of the same will be handed over to

the Bank and Official. If any items are seized, an inventory of such items will also be

prepared and signed by the Authorised Officer and the witnesses and a copy of this will also

be handed over to the Bank Official.

9. In the case of safe deposit vaults also, similar procedure will be followed by the

Authorised Officer. However, pending production of the keys by the hirer for his boxes kept

in the vault, the vault itself will not be sealed by the Authorised Officer as such procedure

will inconvenience other clients of the vault. The interests of revenue will however be

secured by the issue of a prohibitory order under section 132 (2) of the Income Tax Act, as

mentioned in para 6. Where the keys are being deliberately withheld by the hirer, it will be

open to the Authorised Officer either to seize the boxes as such or have them broken open

and searched in the Bank's premises itself.

10. When a locker is broken open, it may sometimes become necessary for the Authorised

Officer to hire from the Bank another locker to keep the contents in safe custody on behalf of

the Department. In such an event, the Bank Officer should provide the Authorised Officer

necessary facilities on priority basis on usual terms & conditions applicable to locker hirers.

11. The following points are to be particularly noted:

(a) No copy of the search warrant will be given to the Bank Official, as there is no

provision in the rules to do so. He is however free to go through the warrant and satisfy

himself that it relates to his Bank and that it mentions clearly the names of the person(s)

whose lockers are to be searched. He may also sign the warrant in token of having read it,

before returning it to the Authorised Officer.

(b) The Bank official is entitled to a copy of the Panchanama and inventory of documents

and valuables seized. He should obtain these and hold them as part of the records of the

Bank.

Cont…18

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(c) If any person is called upon by Authorised Officer to witness a search, that person is

legally bound to do so [Rule 112 (6)]. Hence, if required by the Authorised Officer the Bank

Official should unhesitatingly permit his employees to act as witness for the search and sign

the 'Panchanam' and the inventory.

(d) The Bank Official has no obligation to contact the hirer and inform him about the

search as the Department itself will be doing this.

(e) The search can be carried out at any time and not necessarily during the hours the

Bank is open to the public.

(f) The Officers of the Income-Tax Department are provided with identity cards issued

by the Commissioner and the Bank Official can demand for these cards, if considered

necessary.

(g) The Authorised Officer(s) and the search party accompanying him have instructions

to offer themselves for search both before and after the search operation. This is meant to

obviate the possibility of any allegation that evidence was brought in and planted by them or

that anything valuable was clandestinely taken away.

(h) Whoever contravenes a prohibitory order under Section 132 (3) of the Income-Tax

Act is liable to be prosecuted for such contravention and the punishment prescribed there for

this is rigorous imprisonment which may extend to two years (Section 275A of the Income-

Tax Act).

~~~~~~

Cont…19

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Annexure – 3

SPECIMEN OF PUBLIC NOTICE

Andhra Pragathi Grameena Bank

Head Office: Kadapa

_________________________ Branch

Date:

TO WHOMSOEVER IT MAY CONCERN

Shri/Smt.___________________________ (Name and Address of the locker

hirer)______________________________________________________________________

_____________________________________________________________________

has hired a safe Deposit Locker from us but has not fulfilled the terms and conditions of the

locker agreement. Under the circumstances, we are constrained to break open the locker and

notice is hereby given to the public that interested person/s shall approach the branch on or

before _____________ during business hours for making alternate arrangements, failing

which, we will be constrained to break open the locker on or after _____________ and the

contents of the locker will be sold in public auction without any further notice and the

expenses incurred thereby and arrears of rent and other costs will be recovered from out of

the auction proceeds.

Head of Branch

Cont…20

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Annexure-4

ANDHRA PRAGATHI GRAMEENA BANK

HEAD OFFICE::KADAPA

Branch:…………………………………….

Ref.No:……………………….. Date:……………..

To

Sri/Smt…………………………..

……………………………………

……………………………………

…………………………………….

Dear Sir/Madam,

Sub: Locker No………………..hired by you – Revision of Rent/Security Deposit.

----

This to inform you about the revision made in the annual rental with effect from……………,

the details of which are published in the Notice Board.

The revised tariff applicable to the aforementioned locker hired by you will be as under (the

revised rent is applicable from the date off next renewal. Viz…………….(effective date):

1. Annual rental … Rs._________________

2. Security Deposit … Rs._________________

Kindly acknowledge receipt of this letter and make arrangements to remit the annual rent of

Rs………immediately. We may bring to your kind notice that in terms of conditions set out

in the locker agreement and/ or extant guidelines, the annual rent is payable 30 days in

advance. Hence, please respond to this intimation-cum-request forthwith.

Thinking your,

Yours faithfully

BRANCH MANAGER

Cont…21

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Annexure - 5

NOTICE BOARD

ANDHRA PRAGATHI GRAMEENA BANK :: HEAD OFFICE :: KADAPA

Branch:____________________________

REVISION OF LOCKER RENTS

Category /

Type of

locker

Approximate size of

locker

Existing Rent

(Rs.)

Revised Rent

(Rs.)

1. Small 5”X7.2”X20.08” 400+ST 400+ST

2. Medium 5”X14.4”X20.08” 700+ST 800+ST

3. Large 11.12”X14.4”X20.08” 1200+ST 1500+ST

4. Very large 12.88X17.36”X20.08” 1600+ST 2000+ST

Effective date of new rents:

New customers w.e.f. 01.10.2007

Existing customer w.e.f. 01.01.2008

Branch Manager

(LOCKER.I)

Documents

SAFE CUSTODY SERVICES AND SAFE DEPOSIT LOCKERS · The following are the important steps in letting out the safe deposit lockers. Page No. I. Procedure for letting out safe deposit