14/04/2018

RBI Guidelines to Bank on Cash Management



The Reserve Bank of India has sent a notification to all Public Sector Banks / Private Sector Banks / Foreign Banks / Regional Rural Banks / Primary (Urban) Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks, detailing the standards required for Cash Management activities of the banks when engaging the Service Provider and its sub-contractor. The letter dated April 6, also specified that banks had to hire only companies which have a minimum fleet size of 300 specifically fabricated cash vans, either owned or leased. The notification said that 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 notification says that no cash van can move without armed guards with valid gun licenses and with weapons in a functional condition along.  
The notification also instructs strict background checks of the employees including police verification of at least the last two addresses. Such verification should be updated periodically and shared on a common database at industry level. ATMs would be replenished only during day time and there would be no movement of cash vans after that. RBI also says that 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.

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