Is safety of cash in transit given a short shrift?

Warning bells: Staff of a bank carrying cash withdrawn from SBH main branch, in a metal box in Adilabad on Friday.

The frenetic activity due to demonetisation of Rs. 1,000 and Rs. 500 notes seems to have diverted the attention of bankers away from the issue of safety of cash during transit. Given the cash crunch, some 30 bank branches in town draw money from the State Bank of Hyderabad, Adilabad main branch, which is a chest branch. They transport the cash in autos or four-wheelers without an armed guard.

A few days ago, the chest branch had warned the local post office authorities to transport cash with an armed guard. “They require large sums of money, and we wanted them to have armed guards as per norms,” said SBH chief cashier K. Dharmender.

“Bankers are not violating regulations with regards to transportation of cash though,” said the official. “As many of the branches get to carry only below Rs. 20 lakh every day, there is no need for an armed guard.”

As per regulation, amount between Rs. 20 and Rs. 50 lakh needs to be transported under one armed guard, or two if the amount is over Rs. 50 lakh. “The money is insured and hence the regulation,” Mr. Dharmender added.

Regulations aside, carrying a few lakh worth of currency notes over distances ranging beyond five kilometres could be risky. The Telangana Grameena Bank operates about 10 rural branches within a radius of about 30 km from the district headquarters town. It was TGB itself which had a bad experience with regards to safety of cash in transit. On June 4, 2013, it was robbed of Rs. 30 lakh between Devapur crossroad and Seetagondi village on NH-44.

A motorcycle borne duo was waylaid in broad daylight and the bank had to suffer some losses due to violation of the given regulation. However, cash continues to be transported to the rural branches in the same manner, and when the cash is more, a four-wheeler is used.

Regulations also stipulate that money in excess of Rs. 20 lakh needs to be transported in four-wheelers, the inside of which are not visible from the outside. This regulation, if followed, would be flouting the Supreme Court order on not sporting black film on windows of four-wheelers.