Keep your money safe
The Reserve Bank of India must roll out a set of guidelines to plug the basic loopholes in ATM security
The incident of a State Bank of India (SBI) ATM in south Delhi dispensing fake Rs 2,000 notes last week reveal a deeper malaise in the way cash is managed. The country’s 2.2 lakh machines have been running without any basic security. The country’s largest lender issued a statement after the incident took place suggesting that it was an act of mischief. Later, the police arrested the cash van custodian who admitted to having replaced the fake notes while shifting cash from the currency chest to the ATM. The incident brought to light how simple it is for anyone to tamper with ATMS. The fact that this took place in the Capital, and not in some remote place, raises the possibility that this may be more prevalent that we think. For years now, ATM management and security have been ignored. The blame for this must be shared equally by the banks, the Reserve Bank of India and even the government. There is no “proper” set of guidelines addressing the working of ATMS in the country.
The delivery of cash from currency chests to bank branches and ATMS has been outsourced to cash logistics companies. The cash that is taken out from the currency chest for loading at ATMS and bank branches is carried in vans, which have a driver, two security guards and two “custodians”. There is no bank official who accompanies them. Most ATMS are fitted with CCTVS but there is no monitoring.most of the ATMS do not have any one time combination locking system. Cash custodians have been given passwords to operate the ATMS and while they are supposed to be secret numbers, they are often shared with friends and others.
Instances of ATM thefts have risen and the latest incident at the SBI ATM throws up several questions. The need of the hour is to have a re-look at ATM management and techniques related to cash dispensation. All the ATMS must be upgraded and OTC locking systems installed. The RBI needs to roll out a set of guidelines to plug the basic loopholes.