Challenging the High Court’s order, the State Bank of India, Punjab National Bank, and Bank of India approached the Supreme Court, arguing that continuous deployment of security personnel at ATMs was neither feasible nor necessary
The Supreme Court has set aside a 2013 directive by the Gauhati High Court that mandated round-the-clock deployment of security guards at all ATMs. The apex court accepted the argument put forth by various banks that such a requirement was impractical and not globally recognised as a standard security measure.
The directive in question, issued in response to a suo motu PIL based on a report from The Assam Tribune, had sought enhanced ATM security following an incident where a customer lost RS 35,000 from his account shortly after withdrawing ₹5,000. The High Court had instructed banks to place security guards at ATMs 24×7, enforce customer queues, and ensure that only one person entered an ATM booth at a time.
Banks Challenge HC’s Ruling
Challenging the High Court’s order, the State Bank of India, Punjab National Bank, and Bank of India approached the Supreme Court, arguing that continuous deployment of security personnel at ATMs was neither feasible nor necessary. The Supreme Court had initially stayed the order in December 2016.
Solicitor General of India Tushar Mehta, representing the banks, urged the court to make the interim stay permanent. “In Assam alone, we have 4,000 ATMs. We can’t have one guard per ATM. The worldwide recognised system is to have CCTV surveillance, which we are doing,” he submitted.
The banks also pointed out that ATMs operate 24×7, making the revised High Court order—requiring security guards during ATM operating hours—logistically unworkable. The Reserve Bank of India (RBI) and the Ministry of Finance supported the banks’ stance, stating that the directive was not practical to implement.
High Court’s Security Guidelines
The Gauhati High Court had laid out a series of security measures based on recommendations from the Assam Director General of Police (DGP). These included:
Deploying security guards at all ATMs round the clock.
Ensuring that CCTV cameras function 24×7, with alarm systems to indicate when cameras are non-functional.
Prohibiting entry into ATM booths with helmets, mufflers, or caps that could conceal identity.
Conducting background verification of temporary staff, including canteen workers, in banks.
While the banks have accepted other security measures such as functional CCTVs and background checks for temporary workers, they maintained that posting guards at every ATM was not a viable solution.
With the Supreme Court’s ruling, the focus now shifts towards enhancing ATM security through technology-driven solutions rather than manpower deployment.
