The RBI today came out with stiff guidelines for service providers hired by banks for transportation of cash in the wake of increasing reliance on outsourcing of such activities by lenders.
As per the guidelines, the service provider must have a net worth of Rs 100 crore and should have a minimum fleet of 300 specifically fabricated cash vans.
"...the cash held with the service providers and their sub-contractors continue to remain the property of the banks and the banks are liable for all associated risks, the banks shall put in place appropriate Business Continuity Plan approved by their boards to deal with any related contingencies," the RBI said in a circular.
It has asked banks to review their existing outsourcing arrangements and bring them in line with the latest instructions within 90 days.
Each cash van should be GPS enabled and monitored live with geo-fencing mapping with the additional indication of the nearest police station in the corridor for emergency, it said.
Further, night movement of cash vans should be discouraged.
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"Each cash van should have tubeless tyres, wireless (mobile) communication and hooters. The vans should not follow the same route and timing repeatedly so as to become predictable," the RBI said.
The RBI further added that Rs 100 crore net worth requirement will come into force with immediate effect for all future outsourcing agreements of the banks.