Modi urged to withdraw RBI's cash in transit order

New Delhi: The Reserve Bank of India (RBI) diktat regarding arbitrary changes in norms for cash logistics business has not gone down well with private security agencies. The Central Association of Private Security Industry (CAPSI), an apex boy of security agencies, has sought Prime Minister Narendra Modi's intervention in the matter.

In his letter to the Prime Minister, CAPSI chairman Kunwar Vikram Singh has alleged conspiracy in handing over national cash management to foreign-based or foreign-controlled companies, which would pose a security threat to the country, besides leaving hundreds of employees jobless.

"This decision of RBI would facilitate only two or three foreign-based companies engaged in this business to qualify to manage and deliver to banks and public through ATMs. We have reasons to believe that assigning national cash management to foreign-based/controlled companies are a potential security threat to the country," Singh said in his letter to the PM.

"Imagine a situation if these companies decide to discontinue their operation on any day due to their some undisclosed reasons. What will happen to the nation if cash is not made available to the citizen? It will create unthinkable upheaval in the country," he further said while highlighting the consequences of the RBI order.

Singh also pointed out that the RBI in its last month's notification regarding cash in transit (CIT) companies involved in replenishment services of ATMs, cash pick-up and cash drop revised norms that companies should have a net worth of Rs100 crore and a fleet size of 300 vehicles to do the business.

"It will force around 60 Indian firms putting their shutters down, which would be a huge set back to the government's Make in India initiative in the sector and leave thousands of workers jobless. Moreover, it would create a monopoly of foreign firms in the business," Singh said while red flagging the issue.

The CAPSI has also written letters to Union Finance Minister, MSME Ministry and the RBI asking it to immediately withdraw the circular to safeguard nation's interests and also save thousands of people, particularly ex-servicemen, from getting jobless.