ATM Operations:Security Issues and Risk Mitigation Measures

As per RBI directions, Automated Teller Machine (ATM) operations should be carried out only by certified personnel who have completed minimum hours of classroom learning and training. The content of such training may be certified by a Self-Regulatory Organisation (SRO) of Cash-in-Transit (CIT) Companies / Cash Replenishment Agencies (CRAs) who may tie up with agencies like National Skill Development Corporation for delivery of the courses.

The staff associated with cash handling should be adequately trained and duly certified through an accreditation process. Certification could be carried out through the SRO or other designated agencies.

Character and antecedent verification of all crew members associated with cash van movement should be done meticulously. Strict background checks of the employees should include police verification of at least the last two addresses. Such verification should be updated periodically and shared on a common database at the industry level. The SRO can play a proactive role in creating a common database for the industry. In case of dismissal of an employee, the CIT / CRA concerned should immediately inform the police with details.

Safe and secure premises of adequate size for cash processing/handling and vaulting:

The “Report of the Working Group to Review Security Arrangements in Banks – July 2004” prepared by IBA covers the security arrangements in banks extensively and minutely. According to the report, banks are expected to equip their branches, ATMs, and Data Centers, with the latest security gadgets like CC TV, X-ray scanners, sensors, time locks, turnstile gates, access control, etc. The working group report, among others, deals with branch location and layout, movement of cash within the cash department, cash transportation, security equipment, security set-up, security system audit, support and expectations from state and central governments, the disaster management plan for banks and fire prevention and protection.

The premises should be under electronic surveillance and monitoring around the clock. Technical specifications of the vault should not be inferior to the minimum standards for Chests prescribed by the Reserve Bank. All fire safety gadgets should be available and working in the vault which should also be equipped with other standard security systems.Installing high-quality CCTV cameras around ATMs can deter criminal activity and provide evidence in case of incidents.
Fraud Detection Systems: Advanced systems can monitor ATM activity for suspicious patterns, enabling banks to respond quickly to potential security threats.
RBI constituted a Committee on Currency Movement (CCM) [Chair: Shri D.K. Mohanty, Executive Director] to review the entire gamut of the security of treasure in transit. The recommendations of the Committee have been examined and certain measures aimed at mitigating risks in ATM operations and enhancing security, are listed below:

All ATMs shall be operated for cash replenishment only with digital One Time Combination (OTC) locks.

All ATMs shall be grouted to a structure (wall, pillar, floor, etc.) by September 30, 2019, except for ATMs installed in highly secured premises such as airports, etc. which have adequate CCTV coverage and are guarded by state / central security personnel.

Banks may also consider rolling out a comprehensive e-surveillance mechanism at the ATMs to ensure timely alerts and quick response.

“The above measures shall be implemented in addition to the existing instructions, practices and guidance issued by the Reserve Bank of India and law enforcement agencies. Non-adherence of timelines / non-observance shall attract regulatory action including levy of penalty” said RBI.