Bank Locker Insurance Fixed at 100 Times Annual Rent, No Change Proposed: Sitharaman

New Delhi, March 2026 : Finance Minister Nirmala Sitharaman on Monday informed the Lok Sabha that the standard insurance coverage for bank locker holders remains fixed at 100 times the annual locker rent in the event of loss, such as theft or damage.

Responding to a supplementary question during Question Hour, the Finance Minister clarified that banks are not permitted to check or document the contents stored inside lockers by customers. She explained that such actions would violate existing banking regulations and compromise customer privacy.

“Since banks are not allowed to verify or record the valuables kept in lockers, it is not feasible to determine the actual value of the contents,” Sitharaman said. “Any attempt to monitor locker contents would amount to a breach of both privacy and regulatory norms.”

Given these restrictions, the government has implemented a uniform compensation rule. Under the current framework, customers are entitled to receive compensation of up to 100 times the annual rent paid for the locker in case of any loss. This standardized approach ensures consistency across all banks, regardless of the value of items stored.

The Finance Minister further noted that introducing variable or item-based insurance coverage is not practical under the existing system. Since banks cannot assess the value of individual locker contents, offering differential insurance policies tailored to each customer would be difficult to implement.

“As of now, there is no proposal under consideration to revise or modify this arrangement,” Sitharaman stated, indicating that the government is not planning any immediate changes to the policy.

Meanwhile, in a separate development, Parliament on Monday completed the legislative process for the Finance Bill 2026. The Rajya Sabha returned the bill to the Lok Sabha by a voice vote following a brief discussion and the Finance Minister’s response to queries raised by Members of Parliament.

The Lok Sabha had earlier passed the Finance Bill on March 25 along with 32 amendments. With its passage in both Houses, the bill now provides the legal framework for implementing the proposals outlined in the Union Budget for 2026–27, which will come into effect from the new financial year starting April 1.

The Finance Bill outlines key fiscal measures, taxation policies, and government spending plans for the upcoming year, forming the backbone of the country’s economic roadmap.