Delhi govt yet to notify MHA cash transportation order

Over four months after the Union Ministry of Home Affairs (MHA) issued model rules for regulation of transportation of cash, the Delhi government is yet to notify the rules, with the file pertaining to the proposal shuffling between departments. In a notification on August 8, the MHA had issued the model rules for States to adopt as the Private Security Agencies (Private Security to Cash Transportation Activities) Rules, 2018, framed under the Private Security Agencies (Regulation) Act, 2005.

According to details available in the government’s file monitoring system, the file had been shuffling between different officials of the Home Department and Law Department from September 17 till December 7, since when it has been with a top Law Department officer.
The Centre had initiated the process of drafting rules to make cash transportation safer in 2016, when in July a meeting of State police heads, banks’ representatives and other stakeholders was held in the Delhi government, a government official who attended that meeting said.

By the time the Delhi government gave its report, the MHA got inputs from stakeholders and notified the model rules, it was August 2018. While some States have already notified the rules, Delhi is yet to do so, the official said. The model rules state that there are over 8,000 privately owned cash vans in the country that are operated by non-bank agencies that are either service providers or outsourcing agencies. These cash vans carry over ₹15,000 crore every day and even hold the currency in their own vaults overnight, the rules say.

Back in 2016, since there were no rules to regulate such private agencies, the government felt the need to lay down guidelines for States to adopt. In order to make the transportation of cash more secure, the model rules say that private security agencies have to be licensed under PSARA to provide security for cash transportation. The private security agency and the bank concerned, or the cash-handling agency and the bank concerned have to enter into a contract, the rules say.

The rules also state that the private security agency cannot provide security to a bank or cash-handling agency if the cash vans they use are not compliant with the specifications mentioned in the rules. “No taxi or hired vehicle shall be used for cash transportation activities by the private security agency,” the model rules say. The rules also state that every cash van must have one driver, two armed security guards and an ATM officer or custodian

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