The Supreme Court of India on Tuesday overturned the Guwahati High Court’s order mandating the deployment of security guards round-the-clock at all Automated Teller Machines (ATMs) to ensure entry of only one person at a time.
A bench comprising Justice B.R. Gavai and Justice K. Vinod Chandran considered arguments presented by Solicitor General Tushar Mehta on behalf of various banks, stating that it was impractical to station security personnel at all ATMs across the state.
Practical challenges highlighted
Mehta pointed out that Assam alone has approximately 4,000 ATMs, making it unfeasible to deploy security guards at every location. He emphasized that globally recognized security measures, such as the installation of CCTV cameras, serve as an effective deterrent against fraudulent activities.
Stay on High Court’s Order Since 2016
The Supreme Court had earlier stayed the High Court’s directive in December 2016. Mehta further clarified that petitioner banks, including the State Bank of India, had no objections to implementing other security protocols outlined by the High Court in December 2013 for the smooth operation of ATMs.
Accepting the arguments, the Supreme Court quashed the High Court’s directive mandating 24/7 security personnel at all ATMs, which was originally issued to ensure that only one customer could access the ATM premises at a time.
High Court’s suo motu action
The Guwahati High Court had taken suo motu cognizance of an ATM fraud case reported in December 2012, where an individual was allegedly defrauded of Rs. 35,000. Concerned about customer security, the court had issued notices to the central government, the Reserve Bank of India (RBI), Assam’s Director General of Police, and relevant banks to devise security measures.
The High Court referred to an affidavit submitted by the Assam Director General of Police in May 2013, which proposed a security action plan for all ATMs in the state. The court accepted the plan and directed its implementation, leading to the now-overturned mandate for round-the-clock security guards.
With the Supreme Court’s latest ruling, banks will now rely primarily on CCTV surveillance and other security measures instead of deploying physical security personnel at every ATM.
