Banks seem to be on a rate hiking spree. On one hand, while interest rates on loans are already surging, banks have now also gone for raising rates of safety lockers.

Public sector banks now seem to be in a mood to raise both security deposits as well as annual fees of lockers.

Syndicate Bank went ahead to become the first public sector lender to raise rates on safety lockers.

However rates applicable on lockers differ on the basis of dimensions as well as customer category. This means while customers in metro and Tier I cities will have to shell out more money for even taking a smaller locker, the amount would be comparatively lesser in a Tier II - III city.

Syndicate bank officials said that the rate hike has been following a guideline by regulator Reserve Bank of India as well as advice from the Indian Banks Association.