Cash logistics companies must be worth over Rs 5 crore: Indian Banks Association

Hyderabad: The Indian Banks Association and Ficci are of the opinion that the many new cash logistics companies that have mushroomed must have credible financial net worth. These companies that move cash into and out of ATMs have been incredibly busy in the wake of demonetisation and the November 23 robbery of several crores of rupees by operators of one such company has turned the spotlight on this operation.

The Indian Banks Association (IBA) said a minimum financial net worth of Rs 5 crore must be fixed for any entity to undertake outsourced cash management services.

Companies with a net worth above Rs 5 crore should be allowed to operate up to 50 cash vans. Firms with net worth of Rs 25 crore could operate 51 to 200 cash vans and companies with net worth of Rs 100 crore can operate more than 500 cash vans, the IBA said.

Ficci (Federation of Indian Chambers of Commerce and Industry) said, “With such a huge magnitude of operations to open up in future, it is absolutely necessary to have strict procedures and processes for the cash logistics companies.”