The Reserve Bank of India (RBI) has set a minimum net worth requirement of Rs 100 crore for service providers and their sub-contractors handling cash management logistics on behalf of the banks. The central bank has said cash vans transporting money should have CCTV, GPS connectivity, tubeless tyres, hooters and wireless system.
“Banks are advised to review their existing outsourcing arrangements and bring them in line with these instructions within 90 days. Further, as the cash held with the service providers and their sub-contractors continue to remain the property of the banks and the banks are liable for all associated risks, the banks should put in place appropriate business continuity plan approved by their boards to deal with any related contingencies,” the RBI said.
According to the RBI, cash should be transported only in the owned/leased security cash vans of the service provider or its first level sub-contractors. “Each cash van should be a specially designed and fabricated light commercial vehicle (LCV) having separate passenger and cash compartments, with a CCTV covering both compartments,” the RBI said.
The passenger compartment should accommodate two custodians and two armed security guards besides the driver. No cash van should move without armed guards. The gunmen must carry their weapons in a functional condition. “The service provider or its first level sub-contractor should also furnish the list of its employed gunmen to the police authorities concerned,” the RBI said.
Each cash van should be GPS enabled and monitored live with geo-fencing mapping with the additional indication of the nearest police station in the corridor for emergency. Each van should have tubeless tyres, wireless communication and hooters. “Predictable movement on regular routes must be discouraged. Staff should be rotated and assigned only on the day of the trip,” the RBI said.
“Night movement of cash vans should be discouraged. All cash movements should be carried out during daylight. There can be some relaxation in metro and urban areas though depending on the law and order situation specific to the place or the guidelines issued by the local police,” it said. If the cash van has to make a night halt, it necessarily has to be in a police station. In case of inter-state movement, changeover of security personnel at the border crossing must be pre-arranged, the RBI said.