Use licensed guards for cash van duty, says Home Ministry to banks

NEW DELHI: The home ministry has asked the department of financial services to ensure that the Reserve Bank of India and all other banks only use licensed private security agencies for running cash vans that transfer currency from bank branches to ATMs.

This follows security concerns among state governments after a spate of incidents where cash vans have been looted by criminals. Around 6,000 cash vans carry nearly Rs 15,000 crore of cash every day to replenish over 80,000 ATMs in the country. ET has accessed the minutes of a recent meeting chaired by home ministry additional secretary Rajiv Gauba with all states in this regard.

Many states complained that the RBI and some other banks utilise the services of private guards for cash management by designating them as ‘caretakers’ so as to avoid licensing requirements, as per the said minutes.

"It was stated (by the states) that security provided to protect the property including provision of armoured car service falls under the definition of private security and hence such ‘caretakers’ are private security guards and agencies providing such manpower should obtain a license under the Act,"the minutes say.

The home ministry additional secretary said this was an "important concern" highlighted by the states and directed the matter be taken up with the department of financial services.