RBI asks banks to grout ATMs to a structure for Security
The Reserve Bank of India (RBI) has asked banks to ensure their ATMs (Automated Teller Machines) are grouted to a structure preferably wall, pillar, or floor by 30 September 2019 in a move to enhance security of cash vending machines.
Background: In October 2016, RBI had set up a Committee on Currency Movement (CCM), under the chairmanship of D K Mohanty, RBI’s executive director to review the entire gamut of security of treasure in transit. Based on the recommendations of Mohanty panel, RBI has now issued instructions aimed at enhancing security and mitigating risks in ATM operations.
ATM Grouting: All ATMs shall be grouted to a structure (wall/pillar/floor) by end of September 2019, except for those ATMs which are installed in highly secured premises (ex- airports) or places which have adequate CCTV coverage and are guarded by state or central security personnel.
Digital Locks: As part of security measures undertaken by the central bank all ATMs shall be operated for cash replenishment only with digital One Time Combination (OTC) locks.
e-Surveillance Mechanism: Banks may also roll out a comprehensive e-surveillance mechanism at ATMs to ensure timely alerts and quick response.
Additional Instruction: These newly recommended measures are to be adopted by banks shall be in addition to existing instructions, practices and guidance issued by RBI and other law enforcement agencies.
Penalty: RBI has also warned all banks that non-adherence of timelines as well as non-observance of these instructions would lead to regulatory action including levy of strict penalty.
Month: Current Affairs - June, 2019
Category: Economy & Banking Current Affairs