SC stays order to place security guards at all ATMs 24×7. The Gauhati High Court in suo motu PIL had issued directions preventing ATM frauds

SC stays order to place security guards at all ATMs 24×7. The Gauhati High Court in suo motu PIL had issued directions for preventing ATM frauds.

The Apex Court yesterday stayed the order of the Gauhati High Court directing all banks to deploy security guards at all ATMs 24×7 round the clock..

The Court pronounced the order in response to SLP filed by the State Bank of India. The Court stayed only the direction to place security guards round the clock at all ATMS. Other directions of the order of the Guahati High Court continue to operate. In fact due to the ill managed demonetisation scheme, the remaining directions of the Guahati High Court become much more relevant than before.

Read the SC Order 

Earlier, the Gauhati High Court taking cognizance of a news item published in the Assam Tribune Daily on 14.12.2012 related to ATM fraud initiated a suo motu action exercising its PIL jurisdiction under Article 226/227 of the Constitution of India. Subsequently, notices were issued to the State Bank of India, Local Head Office, Guwahati, Reserve Bank of India, Union of India, Ministry of Finance and Director General of Police, Assam with a view to decide as to what safeguard can be provided to the customers of ATM to avoid recurrence of frauds in future when they go to operate their accounts for withdrawing money from ATM. 

The following directions were issued to the State authorities to ensure implementation of the following plan suggested by the State Government, Assam:

(a)   To adopt security protocols for proper functioning of ATMS.  Security Protocols include –

(i)  Place security guards round the clock at all ATMs so that proper queues are enforced and to ensure that only one customer can enter for one ATM, at a time.

(ii)  To ensure CCTVs are functioning round the clock and some alarm system can be put to indicate if CC Cameras are non functional.

(iii) Entry in ATM chamber with helmets, mufflers, caps etc. with a view to conceal one’s identity should be prohibited by the security guard on duty.

(iv) Check the character & antecedents of temporary workers, canteen employees etc. in the banks.

(b)  To designate Nodal Officers by each Bank for liaisoning with Police and for providing video footage and other information that may be sought by a Police investigator during investigation of ATM related thefts etc.  A lot of time was wasted by Police for collecting information, video footage etc. from Banks.

(c)  To educate public for safe and secure electronic transactions.

(d) Many cases were reported where public had shared their PIN No. with unknown callers leading to siphoning of funds from their accounts. The Banks should write to this warning in ATM chambers.