New cash replenishment and cash transportation rules

India

19 Aug 2018

Cash in ATMs won't be replenished after 9pm from 2019

The Home Ministry has announced a new set of Standard Operating Procedures (SOPs) pertaining to ATM cash replenishment and transportation of cash via cash vans.

Among other things, the SOPs, which will come into effect from February 8, 2019, prescribe that cash in ATMs will not be replenished post 9pm in urban areas and post 6pm in rural areas.

Here are the details.

ATM replenishment

New ATM replenishment and cash transportation rules

New ATM replenishment and cash transportation rules

The SOPs dictate that no cash replenishing or cash transportation activities shall be undertaken after 9pm in urban areas and 6pm in rural areas.

In Maoist-hit areas, the time period for such activities is 9am-4pm.

The notification was issued taking into account a recent rise in attacks on cash vans, cash vaults, and increasing incidences of ATM fraud and internal frauds.

Cash vans handle over Rs. 15,000cr for banks daily

There are more than 8,000 privately-owned cash vans that are currently in operation across India. These are operated by non-bank private agencies, and handle over Rs. 15,000cr daily on behalf of banks.

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Rule set 1

The Home Ministry's new rules for cash van staff

In a bid to improve security of cash vans, the Home Ministry has also set new rules for private agencies operating such vans.

Agencies have to provide private security for the vans, and every cash van shall have one driver, two armed security guards, and two ATM officers or custodians.

Ex-servicemen should preferably be appointed for providing armed security.

Rule set 2

Private agencies have to thoroughly vet cash transportation staff

Private agencies have to thoroughly vet cash transportation staff

Additionally, private agencies have to ensure that all staff appointed for cash transportation go through all requisite antecedent checks including by the police, Aadhaar verification, residence verification, previous employer check, credit history check, and fidelity insurance check.

Cash boxes shall have to be secured to the floor with separate chains and locks that have separate keys with different custodians.

Rule set 3

Vans need certain equipment to be eligible for cash transportation

Cash can only be transported using vans that are fitted with GPS tracking devices.

Cash vans will be provided with CCTV systems with cameras installed on front, rear, and inside the cabin.

A security alarm with a GSM-based auto-dialler and siren will also be provided.

It's also been mandated that no cash van shall carry more than Rs. 5cr on a single trip.

Rule set 4

Cash will have to be handled in secured premises

Cash will have to be handled in secured premises

Insofar as handling the cash is concerned, private agencies have to ensure that cash counting, sorting, and bundling activities are carried out in secured premises in accordance with specified guidelines.

These premises are required to have two physically independent areas - one for office functionalities, and the other for secured cash deposits, and cash processing, handling, and dispatching activities.

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