The decision was taken at a high-level security review meeting chaired by Union Home Secretary L C Goyal recently, official sources said.
Before he was arrested by CBI on January 31, Sinh was enjoying Z-plus security in 14 states including seven northeastern states.
Former Home Secretary Anil Goswami was sacked by the government after he allegedly tried to stall the arrest of Sinh, who was a Minister in P V Narasimha Rao government.
The sources also said that Chhattisgarh Chief Minister Raman Singh, who faces serious Maoist threat, will continue to enjoy protection by elite NSG commandos.