The private security agencies, involved in the business of transporting cash of banks to ATMs and other places, are up in arms against the recent Reserve Bank of India (RBI) circular, which specified norms for cash logistics business.
In a letter to Prime Minister Narendra Modi, the Central Association of Private Security Industry (CAPSI) said these norms are arbitrary.
In a circular, RBI had tightened the norms for these companies. It had said that the minimum net worth of these companies should be Rs 1 billion, to be maintained at all times. The other norms basically related to vans. For instance, one of the norms said that the service provider should have a minimum fleet size of 300 specifically fabricated cash vans.
CAPSI alleged that the RBI circular is a conspiracy in handing over national cash management to foreign-based or foreign-controlled companies, which will pose a security threat to the country, besides leaving hundreds of employees jobless.
CAPSI Chairman Kunwar Vikram said, “This decision of RBI will facilitate only two or three foreign-based companies engaged in this business to qualify to manage and delivery of the nation to the banks and public through ATMs. We have reasons to believe that assigning national cash management to foreign-based or controlled companies are a potential security threat to the country.”
It will force around 60 Indian firms downing their shutters, which will be a huge set back to the government’s Make in India plans in the sector, the letter said.