Bangalore: Banks cutting cost at the cost of safety

Until a few years ago, most ATMs in the city had at least one security guard stationed in it round the clock. However, over the years, many banks have withdrawn security guards, and the reason is anybody’s guess – cost cutting.

Stiff competition among banks to implement cost effective measures to ensure minimum expenditure in maintaining ATMs has resulted in many ATMs being operated without security guards, compromising on the safety of customers.

“Most banks open ATMs to retain their customers. Opening an ATM needs an investment of few lakhs. The bank has to pay a rent for opening an ATM at a private building. It has to pay VSAT fees.
Not only this, if a bank customer withdraw cash at an other bank’s ATM, it has to pay Rs12 per transaction. Also, banks have to pay money to outsourcing agency for filling ATM with cash,” a bank manager told dna, on condition of anonymity.

He said if a bank wants to provide security guards, it has to approach a security agency as it cannot afford to recruit security guards directly. “The security agency management tries to pocket as much money as possible. For example, if the security agency has to provide three security guards per ATM, it tries to make do with two security guards,” the bank manager said.

In the wake of Tuesday’s horrifying incident, assistant commissioner of police, Bangalore Central division, Siddaramaiah, said banks have to mandatorily provide security guards at ATMs. “The police commissioner will call a meeting of all banks to discuss the issue,” he said.