ATMs may run dry during festivals due to guard shortage

New Delhi, Oct 7 –  There may be a cash crunch at ATMs this festival season on account of a shortage of armed staff in private security agencies that provide logistics services to banks.

According to industry estimates, the number of armed security guards in cash handling agencies has come down to a third of what it was six months ago, hitting logistics operations. Besides, many of them are expected to go on leave during the festivals — Navratri, Dussehra, Diwali and so on — adding to the woes of the cash logistics firms.

A number of ATMs are now being loaded with cash every fifth day, instead of every two days earlier, say industry officials. About Rs 15,000 crore cash is moved on behalf of banks every day, according to the Cash Logistics Association.However, according to a public sector bank official, lenders are taking adequate measures to feed extra cash into ATMs, taking into account the additional demand during the festival season.

TOI had reported in its October 1 edition (Cash van companies up in arms over gun licences) that stringent norms kept cash logistics companies from acquiring gun licences, and that this could affect services in the near future.

Police in many states have objected to the use of armed security guards, saying that private arm licences cannot be used for purposes other than those defined by the law, said the association.

This has led to the staff crunch at cash logistics firms, which don't get a formal licence to operate armed services for cash logistics.

Currently, cash van security involves people who have a private licence for carrying arms and are mostly from UP, Bihar and Rajasthan. According to cash logistics firm SIS Prosegur's MD Rituraj Sinha, there have been many discussions between the government and banks on the issue but it remains unresolved. "We may have to stop cash logistics services if the issue is not sorted soon. Looting incidences have instilled fear among cash logistics companies," he said.

 

TNN, TOI