Private security firms against RBI allowing foreign cash management firms

Private security industry says thousands of ex-servicemen have lost their means of livelihood and are facing an acute financial crisis

The private security industry has opposed the Reserve Bank of India's (RBI's) decision to engage foreign cash management companies to distribute national cash to banks and ATMs throughout India, saying it can pose major national and financial threat.    

Kunwar Vikram Singh, chairman of the Central Association of Private Security Industry (CAPSI), the apex organisation of India's private security companies, said, "This decision has resulted in the sudden death to more than 5,000 medium and small enterprises (MSMEs) servicing banks for the last 20 years."

He said thousands of ex-servicemen have lost their means of livelihood and are now facing an acute financial crisis.    

Indian companies running cash management business will not be able to pay the balance of EMIs of loans taken to buy cash vans to run their operations. 

This abrupt decision taken by RBI has created a huge crisis for so many small and medium Indian cash management companies, Singh said.