The Reserve Bank of India (RBI) has allowed Non Banking Finance Companies (NBFC) to offer locker facility to customers.

Non Banking Finance Companies are essentially companies and unlike banks cannot accept demand deposits and do not form part of the payment and settlement system. They also cannot issue cheques drawn on themselves, like banks do.

Earlier, the RBI has received proposals from NBFCs seeking approval for offering safe deposit locker facilities.

In this regard it may be noted that providing safe deposit locker facility is a fee based service and shall not be reckoned as part of the financial business carried out by NBFCs, the RBI said.

NBFCs offering safe deposit locker facility or intending to offer it, should disclose to their customers that the activity is not regulated by the RBI, it added.

Bank locker charges vary also depending on the size of the bank locker. Usually, locker charges at public sector banks are cheaper when compared to private sector and foreign banks.

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