KARACHI, Aug 4: The State Bank has asked all banks and development finance institutions (DFIs) to obtain corporate group insurance against safe deposit lockers of their clients. The policy is aimed at enhancing security for the lockers.

The central bank has issued a set of guidelines, taking notice of incidents of breaking or unauthorized opening of lockers. Through a circular, the banking policy department of the SBP told banks and the DFIs to observe the following safety and security measures at the branches offering lockers to people:

• Banks/DFIs shall ensure that safe deposit locker rooms in their respective branches are adequately and reasonably secured, and the security arrangements are fool-proof.

• Banks/DFIs shall obtain corporate group insurance on various categories and sizes of lockers at competitive rates, which shall be covered under different categories / sizes of lockers.

• Banks/DFIs shall arrange for the location of their staff in such a manner that the physical operation of individual lockers by the locker holders are not visible to them.

• While renewing a contract with security agencies, banks/ DFIs shall ensure that the agency to be appointed is from among the panel of security organizations approved by the Pakistan Banks Association.

In case bank branches are providing the locker facility in areas where a PBA-approved security agency is not available, such bank/DFI shall exercise due diligence to appoint the security guards.

"In case, locker rooms are not adequately secured, the same shall be intimated to SBP 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," says the circular.