News

Bangalore police get tough on slipshod bank security

June 5, 2012

Police in the R.T. Nagar district of Bangalor have instructed insurance companies not to pay out claims to banks unless the bank presents a certificate from the police.

The action is in response to an ongoing problem in which robberies are carried out against banks and armoured cars, and are later found to have been the result of the bank's failure to follow RBI guidelines for security while transporting cash, said an article at DNA India.

"Banks and security agencies are not following RBI guidelines because they are insured against losses," said a senior police officer on the condition of anonymity. "If money is stolen or robbed, banks are not bothered because they will get it reimbursed by insurance agencies."

Two weeks ago, the article said,  a group of armed men robbed a vehicle transporting cash to an ATM, making off with 1.91 crore ($343,800). A police investigation revealed that the vehicle used for cash transit was not secured and the guard accompanying it had received no training at all.

"Banks and security agencies commonly commit such breaches. That is why we have decided to write to insurance companies," city police commissioner T Suneel Kumar told DNA India.

For more on this topic, visit the security research center.