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The Reserve Bank of India’s decision to engage foreign cash management companies to distribute national cash to banks and ATMs throughout India can pose national security crisis, says the CAPSI, an apex organisation of private security companies.
“We want RBI to withdraw its April 2018 circular. They should consult the National Security Advisor before giving away the national wealth to foreign companies”, Kunwar Vikram Singh, Chairman, CAPSI told BusinessLine here.
With just one circular that mandates minimum networth of Rs 100 crore and a fleet strength of 300 vans, this RBI action has led to vanishing of 5,000 companies (mainly MSMEs) who have been servicing banks, Singh said.
Till April 2018, cash management (cash in transit) was never in the domain of RBI. It was in the domain of banks who used to engage cash management companies as per their own rules and parameters.
“We have no problem in RBI regulating cash management. But not like this. It just should not lead to just foreign companies taking away all the business at the cost of Indian MSMEs who have been in this field for 20 years. This is a national security issue and also a competition issue”, Singh said.
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