Cash logistics: Pvt security agencies' grouping flags concerns over RBI directive

The Central Association of Private Security Industry (CAPSI) has flagged concerns about a recent RBI directive regarding cash logistics business, saying that such a move could result in cartelisation in the sector.

In this regard, the grouping of private security agencies has written to Prime Minister Narendra Modi and Competition Commission of India (CCI) Chairperson D K Sikri, among others.

Last month, the RBI had issued a notification regarding cash in transit companies involved in replenishment services of ATMs, cash pick up and cash drop. As per the notification, such firms should have a minimum net worth of Rs 100 crore and a fleet size of 300 vehicles, among other requirements.

The decision of the RBI has shaken more than 60 medium and small companies which do not fall under this criteria, therefore would have to shut their companies, CAPSI has claimed.

In a letter to the Prime Minister, CAPSI Chairman Kunwar Vikram Singh also alleged that the RBI decision would facilitate only two or three foreign-based companies and would create monopoly of foreign firms in the business.

Besides, the grouping has written to the CCI seeking its intervention to prevent monopolistic forces in the cash in transit business.

CAPSI represents more than 2,000 entities that provide private security services.