RBI directs banks to secure ATMs

The Reserve Bank of India has directed banks in the country to take steps to ensure the safety of their cash vending machines.

The apex bank issued the orders last month in light of an increase in the number of burglaries and theft in the cash vending machines of banks.

«RBI has informed that the number of instances of burglary, dacoity, robbery and theft in ATMs, as reported by banks and financial institutions to RBI, were 303 in 2017-18 and 515 in 2018-19. The amount involved was Rs 11.22 crore [$1.6 million] and Rs 25.47 crore [$3.7 million] respectively,» the central bank said in a press release.

According to the notice that RBI sent to the banks, when ATM operators replenish machines with cash, they need to use one-time combination locks. Further, all ATMs need to be grouted to a structure, preferably a wall, pillar or floor, by Sept. 30, 2019. Machines located in a highly secured premises, such as an airport, where they have adequate CCTV coverage and are guarded by state or central security, are excluded.

The RBI also suggested that banks roll out a comprehensive e-surveillance mechanism at the ATMs to ensure timely alerts and quick response.

In October 2016, RBI had set up a Committee on Currency Movement under the chairmanship of D.K. Mohanty, RBI's executive director, to review the entire gamut of security of cash in transit. Based on the recommendations of Mohanty’s panel, RBI is now issuing instructions aimed at enhancing security and mitigating risk in ATM operations.

RBI warned banks that non-adherence of timelines as well as non-observance of its instructions would lead to regulatory action and a strict penalty.

Source: ATM Marketplace