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Union of India - Act

The Private Security Agencies (Private Security to Cash Transportation Activities) Rules, 2018

UNION OF INDIA
India

The Private Security Agencies (Private Security to Cash Transportation Activities) Rules, 2018

Rule THE-PRIVATE-SECURITY-AGENCIES-PRIVATE-SECURITY-TO-CASH-TRANSPORTATION-ACTIVITIES-RULES-2018 of 2018

Published on 8 August 2018
Commenced on 8 August 2018
[This is the version of this document from 8 August 2018.]
[Note: The original publication document is not available and this content could not be verified.]

The Private Security Agencies (Private Security to Cash Transportation Activities) Rules, 2018Published vide Notification No. G.S.R. 755(E), dated 8.8.2018G.S.R. 755(E). - Whereas the public and private sector bank and other financial service providers are outsourcing the secured handling and transportation of cash and valuables by use of armoured car service being provided by private security agencies;And Whereas it has been estimated that there are over eight thousand privately owned cash vans plying across the country which are being operated by non-bank private agencies which function as service provider or outsourcing agency for the banking sector and currently carrying currency of over fifteen thousand crore rupees each day on behalf of banks and some times holding such currency overnight on behalf of banks at their private cash vaults;And Whereas in recent years, there has been a spurt in incidents of attacks on cash vans and cash vaults and ATM fraud and other internal fraud and misappropriation by employees of these private agencies which has resulted in loss of public money leading to increased sense of insecurity;And Whereas privately owned cash vans and currency vaults have become soft targets for miscreants and multiple incidents have been reported by various State Police agencies and there is increased risk of large volumes of cash falling into the hands of undesirable elements;And Whereas keeping in view the criticality of securing cash movement functions in day-to-day banking operations and increase in the banking and ATM operations in the coming years, it has been considered necessary to lay down guidelines for standard operating procedures for providing security by the private security agencies to cash transportation activities, which shall be conformed by the State Governments while framing rules under section 25 of the Private Security Agencies (Regulation) Act, 2005;Now, Therefore, in exercise of the powers conferred by section 24, read with sub-section (2) of section 25, of the Private Security Agencies (Regulation) Act, 2005 (29 of 2005), the Central Government hereby makes the following model rules regulating the manner of providing security by the private security agencies to cash transportation activities, namely:-

1. Short title and commencement.

(1)These rules may be called the Private Security Agencies (Private Security to Cash Transportation Activities) Rules, 2018.

(2)These rules shall come into force on the expiry of six months of their publication in the Official Gazette.

2. Definitions.

- In these rules, unless the context otherwise requires,-

(a)"Act" means the Private Security Agencies (Regulation) Act, 2005 (29 of 2005);

(b)"ATM" means the automatic teller machine that dispenses cash or performs other banking services when an account holder of any bank inserts a Bank card therein;

Explanation. - For the purposes of this clause, "Bank card" includes credit card or debit card;

(c)"cash handling agency", "cash replenishment agency" or "cash-in-transit agency" means an agency or entity, by whatever name called, engaged in cash transportation activities;

(d)"cash transportation activities" means the physical transfer of cash, such as banknotes, coins, credit card, debit card or other items of value from one location to another, and includes loading cash in to, or unloading cash from, an ATM machine;

(e)"private security" or "private security agency" shall have the same meaning as assigned to it in clause (f) or clause (g) of section 2 of the Act;

(f)"Schedule" means a Schedule appended to these rules.

3. Private Security for cash transportation activities, etc.

(1)No private security shall be provided by the private security agency for cash transportation activities unless he holds a license under the Act.

(2)For the purpose of providing private security for cash transportation activities, a contract may be entered into between,-

(a)a private security agency holding a license under the Act and the bank concerned; or

(b)a cash handling agency and the bank concerned:

Provided that in case the cash handling agency holds a license as a private security agency under the provisions of the Act, such cash handling agency may itself provide the private security to cash transportation activities in accordance with the provisions of these rules.

4. Use of specially designed and fabricated cash van.

(1)No private security agency shall provide private security or private security guards to a Bank or a cash handling agency for cash transportation activities, unless such activities are carried out in a secured cash van, which complies with the conditions for design and specification specified in the First Schedule, owned by it or owned by the Bank or the cash handling agency, as the case may be.

(2)No taxi or hired vehicle shall be used for cash transportation activities by the private security agency:Provided that a vehicle which is on long term contract with the private security agency or Bank or cash handling agency and the vehicle complies with the conditions for design and specification laid down under sub-rule (1) may be used by the private security agency:Provided further that in case of any remote location where private security agencies are not present and not serviced by a currency chest, any vehicle at such location may be used as an exception under the strict security control and support of the local police.

5. Requisite number of trained staff per cash van.

(1)The private security agency shall provide the private security for the cash transportation activities with the requisite number of trained staff, directly appointed or engaged by the private security agency, as specified in sub-rule (2).

(2)Every cash van shall have the following minimum staff, possessing the qualifications and training laid down under section 10 of the Act, on board for every single cash transportation activities, namely:-

(i)Driver - one;

(ii)Armed security guards - two; and

(iii)ATM officer or custodian - two.

(3)The cash van shall always be escorted by at least two trained armed security guards on board:Provided that more than two armed security guard may be deputed on a cash van depending on the amount of cash carried and in accordance with the individual company's insurance guidelines or client contract or terrain of operation.

(4)Where the cash van is a medium motor vehicle, one armed guard shall sit in the front along with the driver and another in the rear portion of the van and while in transit, loading or unloading, nature's call, tea or lunch break, at least one armed security guard shall remain present with the cash van all the time.

(5)Notwithstanding any other provision in these rules, the ex-serviceman, otherwise eligible, may preferably be appointed or engaged by the private security agency for providing security for cash transportation activities.

6. Antecedent check of personnel.

(1)No private security agency shall appoint or engage or deploy any personnel for the cash transportation activities, unless such personnel has undergone thorough antecedent check and his proper KYC verification and police verification is done, before appointing or engaging or deploying them by the agency, in accordance with the provisions of the Act or any other law for the time being in force.Explanation. - For the purposes of this sub-rule, the expression "KYC" means the know your customer process of an agency or business identifying and verifying the identity of its clients or person associated or to be associated with the agency or business.

(2)Every private security agency shall be responsible to comply with the following checks before an individual is appointed or engaged to participate in cash transportation activities, namely:-

(a)police clearance certificate - every individual shall obtain the police clearance certificate from his local police station before appointment or engagement;

(b)residence verification - the private security agency shall use its own resources to conduct a physical verification of the residential address of every individual, including general conduct check and the individual shall furnish to the security agency the proof of residential address of at least three years before appointment or engagement for the cash transportation activities;

(c)previous employer check - the private security agency shall use its own resources to conduct reference check with previous employers of the individual, if any;

(d)Aadhaar verification - each individual appointed or engaged for the cash transportation activities shall be antecedent verified through Aadhaar number from the Unique Identification Authority of India;

(e)credit history check - the private security agency shall conduct a credit history check of every individual appointed or engaged to ensure that wilfull credit defaulters are not appointed or engaged for the cash transportation activities;

(f)fidelity insurance - the private security agency shall obtain a fidelity insurance in respect of every personnel appointed or engaged for the cash transportation activities.

7. Adequate training and certification of personnel.

- The private security agency shall ensure that every personnel appointed or engaged for cash transportation activities shall be imparted,-

(a)the training and certified for the security and safe handling of such activities as per the requirements of training laid down in the Second Schedule;

(b)the refresher training once in every two years.

8. Live GPS tracking of cash van during operations.

(1)Every cash transportation activities shall be carried out only in secured cash vans fitted with GPS tracking device.Explanation. - For the purposes of this sub-rule, the expression "GPS" means the global positioning system which is a space based navigation system that provides location and time information in all weather conditions, anywhere on or near the Earth where there is an unobstructed line of sight to four or more GPS satellites.

(2)The private security agency shall ensure that each cash van shall be monitored at all times during cash transportation activities through a redundant communications protocol.

9. Guideline for maximum cash carrying limit in a single cash van.

(1)The private security agency involved in cash transportation activities shall ensure that no cash van carries cash of more than five crores rupees per trip.

(2)The private security agency shall ensure that secured cash van shall be deployed for carrying cash of more than ten lakh rupees per trip.

10. Specification for private cash vaults used for holding and overnight vaulting of Bank currency.

- The private security agency shall ensure that all cash handling, including counting, sorting, and bundling activities shall be carried out in secured premises in accordance with the following guidelines, namely:-

(a)Location of private cash vault premises - the premises used for cash handling activities shall be located to ensure safety of activities/ operations, including areas closer to bank's cash withdrawal centre or police station and secluded areas with poor connectivity be avoided;

(b)Design of premises - the premises shall be designed to include two physically independent areas, one for general office purpose and other for secured cash processing and handling activities and it shall accommodate space for cash deposit, collection, sorting, counting and delivery and dispatch of cash on secured cash vans;

(c)Cash vault - a secured area shall be designed to store cash to meet with the requirement of the Reserve Bank of India specified for cash vaults in accordance with the following specifications, namely:-

(i)in smaller cities with limited overnight vaulting requirements of less than ten crore rupees, a strong room with defender safes;

(ii)at operation centres with overnight vaulting requirements between ten to one hundred crore rupees, vaulting facility as per the norms of the Reserve Bank of India specified for C Class vaults;

(iii)at large operation centres with overnight vaulting requirements of more than one hundred crore rupees, increased vaulting facility in consultation with the concerned Bank; and

(iv)all overnight vaulting facilities shall have provision to store currency of multiple Banks in separate and exclusive bins;

(d)Security of cash vault - the private security agency shall ensure the following security aspects at its cash vault used for secured handling of cash on behalf of the Bank, namely:-

(i)adequate number of armed private security guards are deputed round the clock;

(ii)premises is under 24x7 electronic surveillance and monitoring;

(iii)cash vault is provided with CCTV system with adequate number of cameras having at least ninety days recording facility;

(iv)the activities at cash vault is undertaken under dual custody basis;

(v)the main cash vault area complies with all safety norms, like firefighting systems, smoke detection systems, emergency lighting, control room for monitoring the movement of vehicles, auto-dialer and burglar security systems;

(vi)security alarm with GSM based auto dialer, fire and magnetic sensor are installed;

(vii)the loading and unloading area of cash is covered by night vision CCTV cameras;

(viii)electric power supply inside the cash vault is provided through plug-in, plug-out system;

(ix)carrying of naked light inside the cash vault is strictly prohibited and dry battery operated torches or emergency lights are used inside strong rooms;

(x)emergency lighting with the help of inverter shall always be available to the security staff; and

(xi)cash processing and vault areas shall have restricted and controlled access, preferably through interlocking systems and frisking.

Explanation. - For the purposes of this rule, the expression "CCTV" means the closed circuit television which is a self contained surveillance system comprising cameras, recorders and displays for monitoring activities in a store or company.

11. Measures for risk mitigation.

(1)The private security agency shall ensure that the ATM under its security shall be fitted with one time electronic combination locks for reducing the instances of crew pilferage losses and ATM frauds.

(2)The cash for loading in to an ATM machine shall be collected from the Bank on previous day or in the first half of the day so that operations can be concluded before the time stipulated in sub-rule (3).

(3)No cash loading of the ATMs or cash transportation activities shall be done -

(a)after 9 PM in urban areas;

(b)after 6 PM in rural areas; and

(c)before 9 AM or after 4 PM in the districts notified by the Central Government as Left Wing Extremism (LWE) affected areas.

The First Schedule[See rule 4(1)]Design and Specification For Secured Cash Vans

(a)Make. - The cash van shall-

(i)be a Light Commercial Vehicle, with an engine capacity of not less than 2200 CC, preferably turbocharged;

(ii)be not more than seven years old;

(iii)have tubeless tyres;

(iv)have a ground clearance of not less than 190 mm; and

(v)accommodate minimum of five passengers.

(b)Layout. - The cash van shall have the compartment for storing cash, physically separated and locked from the passenger compartment unit;

(c)Cash compartment security. - (i) The cash compartment should be inaccessible from outside the van unless operated internally through manual or electronic lock and cash compartment is specially reinforced with steel with only one door and grill gate;

(ii)the entrance of the cash compartment shall be from the rear side to ensure proper visibility, operational feasibility and CCTV surveillance;

(iii)all windows and wind screen shall have wire mesh protection of not more than one square inch and each window mesh shall have a circular port-hole of six inches diameter for use of weapons;

(iv)the panic switches for operating the hooter are available with the driver and other occupants.

(d)Cash box security. - Each of the cash boxes shall be secured to the floor with separate chains and have locks that can be opened or locked only by using separate keys kept with different custodians and cash for each bank shall be carried, preferably, in a separate box with the name of the bank written on it.

(e)Other security features. - (i) The cash van shall be provided with a small CCTV system with at least five days recording facility and three cameras installed in front, rear and inside of the cabin.

(ii)A security alarm with GSM based auto-dialer shall be provided with a motorised siren.

(iii)The cash van shall be equipped with hooter, fire extinguishers and emergency lights to ensure quick reaction in case of an attack.

The Second Schedule[See rule 7(1)(a)]Training For Personnel Appointed or Engaged in Cash Transportation Activities

(a)Basics of cash handling and cash transportation activities.-

(i)Scope of service

(ii)Team composition

(iii)Role of driver, armed guard, cash custodian

(iv)Functioning of cash vans

(v)Contact details of concerned agencies

(vi)Threat and risks involved

(vii)Reporting procedure

(b)Threat and risks.-

(i)Criminal and miscreant action

(ii)Tailing by vehicle-borne criminals

(iii)Specific threats to stationary and moving vehicle

(iv)Insider's threat

(v)Fraudulent practices by team members

(vi)Loss of life and medical emergency

(vii)Road accident and vehicle breakdown

(viii)Fire accident

(c)Safety and security of cash van.-

(i)In-built safety features of the cash van carrying cash and valuables

(ii)Cash boxed for carrying cash and valuables

(iii)Locking and security systems

(iv)Weapon and ammunition

(v)Communication equipment

(vi)Global Positioning System

(vii)Fire extinguishers

(viii)Distress alarm

(ix)First-aid kit

(d)Agencies.-

(i)Controlling Authority under the Private Security Agencies (Regulation) Act, 2005 (29 of 2005)

(ii)Police station, PCR vans, police helpline

(iii)Controlling supervisor and operations manager

(iv)Concerned Bank representative

(v)Ambulance and hospital services

(e)Weapons, ammunition and documents.-

(i)Minimum 12 bore DBBL shot gun should be provided to the guards. Gun must be test fired at least once in two years. Gun cartridges must be replaced once in 02 years. Gun must be checked and certified by a Government approved armourer

(ii)Documents - gun licence, identity card and permission to carry weapon during restrictions imposed by authorities

(iii)Real weapons carried by miscreants

(iv)Other objects which can be used as weapon by miscreants

(f)Emergency and incident response.-

(i)Distress alarm procedure

(ii)Seeking help from concerned agencies

(iii)Use of weapon to deter and resist criminals and miscreants

(iv)Ensure safety of team members and consignment

(v)Disengage from situation and drive vehicle to safety

(vi)Evacuation of the injured

(g)Other internal organisational procedures.-

(i)Antecedent check procedure

(ii)The Provident Funds Act, 1925 (19 of 1925) and benefits

(iii)The Minimum Wages Act, 1948 (11 of 1948) and benefits

(iv)The Employees State Insurance Act, 1948 (34 of 1948) and benefits

(v)Leave entitlement and application procedure

(vi)Other company rules

(vii)Obligations as employee

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