What is a Bank???An establishment for the custody, loan,Exchange, or issue of money &facilitating the transmission of funds. What is Banking???In general terms, the business activityof accepting and safeguarding moneyowned by other individuals and entities,and then lending out this money in orderto earn a profit.
Types of Banks in India• Central Bank: The Reserve Bank of India is the central Bank that is fully owned by the Government• Public Sector Banks: State Bank Group: Regional rural banks• Private Sector Banks: Foreign Banks, Scheduled and Non- Scheduled Banks• Co-operative Sector: State Co-operative Banks, Central Co-operative Banks, Primary Agriculture Credit Societies• Development Banks/Financial Institutions: IDBI, ICICI, NABARD
Functions Of BanksI. Accepting DepositsII. Lending MoneyIII. RemittancesIV. Locker’s FacilityV. Foreign Exchange Business
Locker’s FacilityA locker also known as a Safe deposit boxis a small, usually narrow storage compartment.They vary in size, purpose, construction,and security.
Safe deposit vaults or bank lockers have long beenconsidered the safest place to store heirloom jewelsstock certificates, deeds and other valuables.While most banks offer such a facility, the locker sizannual rent, deposit required, time period and provifor refund differs for various banks.
Why Use Bank Lockers?Storing too much jewellery and valuables in thehouse at times becomes a security issue and animpediment in case of natural calamities.Bank lockers offers you, a safe, trustworthy spaceto store your valuables, jewellery, documents andother things dear to you.
Bank Locker Requirements Have a savings account with the particular bank. Deposit a fixed amount as cautionary deposit for a specific period. Have to pay the locker rent in advance, either for one year or more. Apart from(identity and address proof), banks conduct a signature verification process before renting out a locker.
Have to sign an indemnity agreement on stamp paper. The locker can be operated either singly or jointly, but only one key is allotted per customer. A bank locker can be assigned to any adult, firm or association, on a single or joint basis. All you need to do is fill out a simple locker application form and locker agreement, agreeing to abide by its terms and conditions, and pay the deposit and the rent.
For instance:ICICI Bank demands a fixed deposit (FD) ofRs 60,000, Rs 1 lakh or Rs 5 lakh, dependingon the locker size.Union Bank Of India (UBI) demands an FD ofRs 25,000 for three years
Citibank rents out lockers only to CitiGoldcustomers who have a minimum amount of Rs30 lakh in the bank, either in savings account,mutual funds or FD, or a combination of these.While for SBI, the FD amount should be 20times the annual locker rent.
Bank Locker ChargesThe rent may vary slightly for different branchesof the same bank depending on the branchlocation. The locker rent is higher if the branchis located in a prime commercial area of thecity.Private and foreign banks charge a much higherrent compared to public sector banks.
For exampleThe annual locker rent charged by Citibank forits smallest locker is Rs 2,500 while that forthe largest one may go up to Rs 40,000.The annual locker rent at Standard CharteredBank ranges from Rs 2,245 to 15,435.
Bank Locker RulesLocker facility is provided by the bank at itsselect branches.For obtaining a locker at the bank, you must bean account holder with the bank.Lockers can be allotted both individually(except minor) as well as jointly.The lockers are allotted on first come firstserved basis to the customers only.
The Security Deposit will be kept under Bankslien in respect of rentals and other dues onlocker services viz. breaking open orreplacement of lock in case of loss of keys etc.An acknowledgement will be issued by thebank for fixed deposit to be kept as securitydeposit.The hirer of the locker will be provided thecopy of the agreement i.e. Memorandum ofLetting by the bank.
Loss of key should be immediately informed tothe bank branch.Operate the locker at least once in every sixmonths and if the locker remains unoperated formore than a year then the bank has a right tocancel the allotment of the locker by giving anotice for security reasons and treat the Renter/sas a defaulter, notwithstanding that the rent hasbeen paid up to date.
The bank is responsible for any loss.The locker is to be operated during the specified timing displayed at the branches.
The Near FutureThe main aim of this project to provide securebanking system, by taking fingerprints asauthorized identity at ATM/banks.
Advantages:There are many advantages because fingerprintis unique for every person it cannot be imitatedor fabricated .• Sophisticated security• No manual errors• No false intrusion• Need not to carry any card/key• Others cannot steel the user’s entry key