Security Department SEC’s Sl No: 16 O&M No. 430/13 - 14.

Circular No. SEC/601/16/OM-0430/13 - 14.

30-October-2013

CONFIDENTIAL

All Branches
All Regional Heads
ALL Departments, Head Office
All Staff Training Colleges

Subject : Cash Remittance.

General:

The Branches, quite often have to either remit excess cash to the Currency Chests
or bring cash from there. The cash, while in transit is vulnerable and exposed to
threat especially during its loading and offloading. Except in very rare cases, it is
impossible for the Cash Van or carrying vehicle to approach the safe or the strong
room area, and therefore, the cash has to be carried in container between the two
points. During this period cent percent security reliance has to be placed on man,
the most fallible and vulnerable of all protective elements. The protection of money
and valuables on the move, therefore, is one of the most important aspect if not
the most important, in the security set up in a bank.

The non-currency chest branches are permitted to hold a specific amount of cash
only depending on their volume of business. The excess cash is required to be
remitted to the nearest currency chest branch on regular basis due to the
following reasons:

i) Accumulation of excess cash exposes the Bank to greater security threat;

ii) Excess cash, when deposited to the currency chest branch adds to the
profitability of the Bank.
Similarly, whenever a non-currency chest branch falls short of cash, it receives
inward remittance from a currency-chest branch. Therefore, the cash remittance
may take place between:-

1. A currency chest branch (own bank or State Bank of India or other

nationalized bank) and a non-currency chest branch;
2. A Remittance Centre and a Currency Chest/Non-currency Chest Branch.
3. 2 (two) non-currency chest branches and / or Extension Counter;
4. A currency chest/non-currency chest branch and an ATM;

The Bankers Indemnity Policy covers cash-in-transit providing the following

insurance limit:

i) Limit of cash-in-transit - Rs.600.00 Lakh per occasion

(It is advisable to carry not more
than Rs.3 Crore unless it
becomes an absolute necessity)

ii) Remittance without Armed Guard - upto Rs.20.00 Lakh

iii) Remittance with one Armed Guard - Above Rs.20.00 with a

maximum of Rs.50.00 Lakh

iv) Remittance with two Armed Guards - Above Rs.50.00 Lakh

In the background of security reasons and impact on Bank’s overall profitability,

non-currency chest branches are permitted to hold only stipulated amount of
cash on day-to-day basis. Excess cash held by the branches, therefore, are
required to be remitted to the nearest currency chest branch. Such excess cash,
when in transit, becomes most vulnerable due to its exposure and casual attitude
often adopted by the remittance team.

Threat Perception:

It must be borne in mind that the cash while in transit becomes most vulnerable
because of its exposure and casual attitude often adopted by the remittance team;
The time when the cash is loaded / off-loaded are the most crucial and demands
utmost vigilance. During its movement the vehicle is exposed to ambush by
criminals / extremists, road-blocks, traffic jams, public unrest etc.

Possible Reasons:

i) Lack of secrecy by the branch concerned i.e. only the staff members
of remittance team should know others need not.
ii) Lack of adequate caution or mental alertness on the part of the
Bank’s staff during preparation, loading, carrying and handing over
the remittances;
 iii) Lack of alertness and preparedness on the part of the escort and
ineffectiveness of the fire-arms and ammunition;
iv) Lack of proper planning;
v) Casual attitude of branch management towards cash remittance. It is
often found that the Canteen Boy or Generator Operator has been
entrusted with hiring the remittance vehicle.
vi) Leakage of information from branches;
vii) Not following the guidelines issued by Head Office, Regional Offices
with regard to cash remittance.
viii) Not paying heed to local restrictions issued by Police Authority,
especially in the disturbed areas;
ix) Movement of cash on the same day of the week almost at the same
time taking the same route e.g. cash van from “A” CCRC Branch lifts
cash from G, H, I Non-currency chest branches on Fridays taking the
same route in the same sequence;
x) Instead of cash van, 2-wheelers, 3-wheelers or other mode of
transport being used at random;
xi) Steel Trunks not being used or not being chained to the body of
the vehicle;
xii) Remittance carried out by single officer in his own vehicle /
hired car/ two wheeler

Precautionary Measures:

i) Remittance should be sent only during day time.

ii) Advance intimation, either on phone or by any other means should be sent
by the remitting branch to the receiving branch. In the event of failure to report
in time, on the part of the employees accompanying the cash, immediate
appropriate action should be initiated by the receiving branch.

iii) In sending such information great precautions are to be taken. Information

must, therefore, be sent very carefully and if possible through coded message.

iv) Great secrecy should be maintained regarding the despatch of remittance.

v) Discussions about such remittances should be restricted to those people

directly concerned with remittances.

vi) The cash and valuables, which are to be sent, should be ready well before
the actual time of loading. Similarly, the vehicles, the armed escort, the
accompanying cashier and the messenger should be ready well before time.
vii) Each time before opening of cash the Officer(operation)/ Authorized Official
of the Branch should visit the outside of the premises as well as inside to see
as to whether any undesirable person/s or vehicles are around at the office.
The main gate is to be closed or somebody might be kept at the door to watch
any undesirable person/s entering into Bank’s premises. The Bank’s guards, if
posted, must be present at the time of opening of cash. During business hours
the Armed Guard, if any, should place himself in a convenient position so that
the Cash Counters are within his view. Before opening the safe, the joint
custodians must ensure that the locks are intact and that there has been no
tampering with main door of the strong room. The strong room door and the
grill door under dual control system should then be opened to enter the strong
room and immediately closed from inside.

viii) All remittance must be carried out through steel trunk. Herein after
the steel trunk is referred to as cash box/ container. Special Type of steel
box suitable for carrying cash securely and fitted with strong lock should
only be used for carrying of cash which should be locked up in presence of
the Authorised Official/ SWO carrying the treasure after the contents are
placed in. The Key of box containing treasure shall not be carried and the
same shall remain at the Branch when remittance is being effected
between CCRC and our Branch. The box will be opened by the other set of
the Key available at the CCRC or Branch as the case may be.

ix) Written order for cash remittance should be issued by the Manager/
Officer(operation) to the Head SWO A/B directing him/ her to hand over the
amount required to be remitted, through a specified person mentioning
thereon the destination on the format specified by the Bank. This will be kept
attached to the relative cash voucher. The specified person shall acknowledge
the amount on the reverse side of the order and receive the money from the
office in presence of the Authorised Official after proper verification and shall
remain in charge of the cash till it is deposited at the destination whether
Treasury, Reserve Bank of India, State Bank of India and other Bank or in the
nearest Currency Chest Branches of the Bank. He will remain accountable for
such cash sent under his charge till the remittance is acknowledged in full by
the destination office.

x) As far as possible the cash should be transported only through the Bank’s own
cash vans. In case of non-availability vehicle should be hired very cautiously.
Vehicles standing in front of the branch premises should not be engaged.
xi) In rural branches, where a choice between a public transport and
coolie/pack-animal services is available the former should be used.

xii) An Outward Remittance Register should be maintained by each branch and

the details of hired vehicle and other information involving remittance should be
noted (Date, Amount, Registration Number of Vehicle, Persons Travelling,
Signature of Head Cashier, Dy.Manager/ Officer(Operation), Receiving Clerk, Cash
Peon, Driver’s Name, License Number, Owner’s Name)
xiii) The amount of cash sent from one point to another, should not exceed the
limit for which transit insurance cover has been arranged.
xiv) All cash remittance should be accompanied by at least 2 (two)
employees, one of whom must be from cash department while the other
should be the Armed Guard (for remittance between RS.20.00 Lakh &
Rs.50.00 Lakh).

For remittances up to Rs.20lacs it may not be necessary to provide an

armed escort. However where Armed Guard is available, the remittance
should be escorted by the Armed Guard of the branch as far as practicable.

xv) All cases of remittances exceeding Rs.50.00 Lakh should be escorted by

two armed guards, one of whom should sit beside the driver and the other in
the rear where cash container is kept. In other cases, where there is only
one armed guard, he should occupy the seat in front beside driver.

xvi) Before the cash is taken out from the strong room, it must be ensured that
the main entrance to the branch remains locked from within to deny access to the
outsiders. Branches having grill enclosure in the Cash Section should be locked
from inside;

xvii) The Bank’s armed guard (s) should check his/their fire-arm(s) and position
himself/themselves suitably.

xviii) Joint custodians of cash may thereafter arrange for the cash to be taken out
of the strong room.

xix) Joint custodians should satisfy themselves that precautionary measures have
been taken;

xx) When ready to leave, the escort should go out of the branch first. On being
satisfied that there is no danger in and around, he should give signal to the Cash
Peon to come out of the branch.

xxi) The armed guard belonging to the remitting branch at the entrance should
keep a sharp vigil in the vicinity. The cash box should then be carried to the cash
van under the supervision of accompanying cashier, loaded on the vehicle and
chained to the chassis of the vehicle;
xxii) Armed guards should not be used as carriers of the cash. Rather they
should remain alert with their weapons in loaded condition as long as it is being
used for protection of the Bank’s assets.
xxiii) The driver of the vehicle should remain on his seat when the cash is brought
out.
xxiv) No unauthorized person should be allowed to enter or take a lift in the
remittance vehicle, whether he is an employee or an outsider. Only the employees
having specific office order are allowed to board the cash van/remittance vehicle.
xxv) The cash van driver and the accompanying armed guards must be on guard
and be very cautious about fake accidents, fake police officials, unusual traffic
diversion, sudden roadblocks and any vehicle following from behind.

xxvi) If the vehicle is required to take halt for some genuine reason, no
conversation should be opened with any unknown persons. Doors and windows
should not be opened
xxvii) If the same cash van is used for transporting remittance to more than one
branch, it is necessary to maintain punctuality and delay at any point must be
avoided and security precautions must not be slackened at any of these places.

xxviii) The cash van should be parked nearest to the Branch premises to facilitate
quick loading and off-loading of cash.

xxix) The door of the vehicle must have locking facility from inside.

xxx) The vehicle should have appropriate fittings so that the cash containers can
be secured to the vehicle.

xxxi) When transportation of cash between two branches is a regular feature, care
should be taken to ensure that a specific pattern with regard to days, dates,
timings, routes, frequency do not emerge. In other words, the days, dates,
timings, routes and the staff should be changed at regular intervals as frequently
as possible. This does not mean that a long and circuitous route is to be followed.
It is cautionary measure for safety against probable looting of cash during the
journey by persons who may have had observed the movements in this respect
and chalked out plan in advance.

xxxii)Keys of the cash boxes will not be carried in vehicle. Currency chest
branches should maintain separate locks for each non-currency chest branch.
One set of key will be kept in non-currency chest branch.

xxxiii) Routes where traffic bottlenecks are common feature should be avoided.

xxxiv) In case of doubt / suspicion, the remittance should be taken back or the
driver should drive his vehicle to the nearest police station.

xxxv) In case of sudden roadblocks, sudden strike, civil unrest, accidents etc. the
vehicle should be taken to the nearest Police station. If the police station is very
far off then the vehicle should be taken to a nearest Govt. Office/Post Office or
any other big organization. In case it cannot proceed further the remittance team
should go back to the originating branch.
xxxvi) During persistent civil unrest/riots, turbulence an disturbed conditions if
the remittances have to pass through affected areas, remittance may be avoided
and if it cannot be avoided additional security arrangements must be made.
xxxvii) The remittance team should come back to the currency chest branch after
day’s work positively before sunset within duty hours.

xxxviii) At the receiving branch, on receipt of information that a remittance is

being received the armed guard, if any, should be alerted.

xxxix) The receiving branch should verify that the persons accompanying the
cash are in fact the representatives deputed by the remitting branch. This can
be achieved by a matching of signatures or by the use of identity cards.

xxxx) The receiving branch should open the container in the presence of the
joint custodians of cash at the branch and the employee from the remitting
branch accompanying the remittance.
xxxxi) Any discrepancy found in the remittance should be pointed out at once
to the latter and signature obtained thereof.
xxxxii) The remittance should be opened in the strong room or in the room
where the safe is located and the precautions laid down for the opening of the
safe, should be strictly followed.
xxxxiii) Receipt of the remittance should be acknowledged to the remitting
branch with special urgency.

xxxiv) Additional security measures i.e. GPS based tracking devices may be
installed at the cash van in terrorist/ insurgency prone areas.
xxxxv) In case of remittance by hired vehicle, the following precautions should be
taken:
a) The same car should not be hired time and again;
b) The registration of the vehicle, driver’s license should be checked and
details to be recorded in a register;
c) The vehicle’s fuel tank must be full and it must not stop enroute for
re-fuelling;
d) The vehicle belonging to staff members will not be used under any
circumstances;
When remittance of cash from one Branch to another has to be carried over a
long distance covering journey by rail or steamer etc., the cash carrying box
should be suitably fastened with cords and then sealed over the knots with lac
or lock itself should be sealed with lac under cloth covered by suitable device
preventing opening of the lock or the box without tampering the seal. Where it
is so possible the box containing the cash should be weighed from the
remitting office and in the covering note the weight should be inserted. The
receiving office in that case should first weigh the box and then examine the
lock and seal.
 xxxxvi) The remittance team should have important telephone numbers of
police and civil officials with them so that they can take the help of police or
civil officials in the event of any untoward incident.

xxxxvii) A check list of precautionary measures must be evolved and followed.

All Regional Heads are advised to ensure that adequate precautions as mentioned
above are taken by the branches before and during the cash remittance. The
officials from regional offices should also sensitize the branch employees in
adhering to the security measures. Any lapse / deviation should be dealt with
firmly.

Chief General Manager