All Banks / DFIs,
Dear
Sirs/ Madam,
SECURITY STANDARDS FOR ENHANCEMENT OF
SECURITY OF THE LOCKERS
It
has been noted that a number of incidents involving breaking
of lockers / attempts to break / open locker have occurred
in different branches of the banks throughout the country.
Such incidents have serious repercussions on the banking
business besides having direct bearing on public confidence
in the banking system. A lot of valuables placed in these
lockers have been vandalized causing loss of life time
savings of the locker holders. It is, therefore, imperative
that banks should improve the standards for the safety
and security of the lockers.
2. Accordingly, it has been decided that all banks / DFIs
shall observe the following minimum safety and security
measures at branches / places where safe deposit lockers
facilities are offered to general public: -
i) Banks/DFIs shall ensure that safe deposit locker rooms
in their respective branches are adequately and reasonably
secured from all sides, and the security arrangements in
place are fool-proof and meet the security standards developed
by each bank / DFI.
ii) Banks/DFIs shall obtain corporate group insurance on
various categories and sizes of lockers at competitive
rates, which should be properly conveyed to the existing
locker holders / new locker holders before they obtain
a locker. Customers should also be informed about minimum
and maximum amount of loss as per terms & conditions
of the group insurance policy, which shall be covered under
different categories / sizes of lockers.
iii) Banks/DFIs shall arrange for the location of their
staff detailed for attending to the safe deposit locker
business in such a manner that the physical operations
of individual lockers by the locker holders are not visible
to them.
iv) Henceforth, while renewing the security contract with
the security agencies, banks/DFIs shall ensure that the
security agency to be appointed is from among the Pakistan
Banks Association (PBA) approved panel of security agencies.
It is understood that PBA is in the process of developing
such a panel and will finalize the same by 30th September,
2004. Till such time, banks/DFIs should carry out proper
due diligence process on the security agencies, as well
as the guards posted at their branches. The head of security
agency will give an undertaking that in the event of any
act of vandalism, the security agency will be liable to
make good the losses, if any, suffered by the bank/DFI.
In case the bank branches are providing safe deposit locker
facility in areas where security agency on the PBA approved
panel is not available, the bank/DFI shall carry out due
diligence at the branch for the appointment of their own
security guard(s).
v) Frequency of daily random checks by senior bank/DFI
officials posted at the branch must be increased preferably
during regular duty hours and not during the time of change
of guards to ensure that everything is in order and that
the guards are performing their duties efficiently.
vi) In case of any loss arising due to breakage of /damage
to the locker, the loss sustained by the locker holder
be made good by the bank/DFI immediately as per the claim
within the insurance ceiling of the locker. Thereafter,
the bank/DFI may claim the amount from the relevant insurer.
vii) Banks/DFIs must vociferously pursue criminals involved
in locker breaking through due course of law to set an
example and dissuade others from emulating the same.
3.
Banks/ DFIs are free to take further measures in addition
to above, keeping in view other aspects for safety & security
of lockers. In the meantime, banks / DFIs are advised to
provide State Bank of Pakistan a certificate within 30
days of the issuance of this Circular that the safe deposit
locker rooms meet the criteria laid down in 2(i) above.
The internal auditors of the bank/DFI shall also certify
that the security arrangements are fool-proof and meet
the desired security standards. In case, locker rooms are
not adequately secured, the same shall be intimated to
State Bank of Pakistan within 30 days of the issuance of
this Circular and necessary arrangements be made on urgent
basis and the needful be done within 90 days of the issue
of this Circular positively.
4. Banks /DFIs are advised to meticulously follow the
above instruction and submit compliance report within six
months of the date of this circular.
Please acknowledge receipt.