In a significant ruling, the Supreme Court of India on Tuesday overturned the Guwahati High Court's order, which had mandated the deployment of round-the-clock security guards at all Automated Teller Machines (ATMs) to restrict entry to one person at a time.

A bench comprising Justice B.R. Gavai and Justice K. Vinod Chandran considered arguments from Solicitor General Tushar Mehta, representing various banks, and ruled that such a requirement was impractical given the number of ATMs across the state.

Practical Challenges Cited in SC Ruling

During the hearing, Solicitor General Mehta highlighted the logistical and financial impracticality of deploying security personnel at every ATM. He noted that Assam alone has around 4,000 ATMs, making it unfeasible to post security guards at each location.

Mehta further argued that globally accepted security measures, such as the installation of CCTV cameras, effectively deter fraudulent activities and are more practical than physical security personnel.

Supreme Court Stays HC Order Since 2016

The Supreme Court had initially stayed the High Court’s directive in December 2016, preventing its implementation while reviewing its feasibility.

Mehta also clarified that banks, including the State Bank of India (SBI), had no objections to implementing other security measures suggested by the Guwahati High Court in December 2013, which aimed at enhancing ATM security while ensuring smooth operation.

Origin of the High Court Order: Suo Motu Action on ATM Fraud

The Guwahati High Court had taken suo motu cognizance of an ATM fraud case reported in December 2012, where a victim lost ₹35,000 due to fraudulent transactions.

Concerned about customer security, the High Court issued notices to the following authorities:

• Central Government
• Reserve Bank of India (RBI)
• Assam Director General of Police (DGP)
• Relevant banks

The High Court referenced an affidavit submitted by the Assam DGP in May 2013, which proposed a state-wide security action plan for ATMs. The court accepted the police-recommended security measures, leading to the 2013 directive mandating 24/7 security personnel at all ATMs.

Banks to Rely on CCTV Surveillance Instead of Security Guards

With the Supreme Court's latest ruling, banks will now focus on CCTV surveillance and other technological security measures instead of deploying security guards at every ATM.

This decision is expected to reduce the financial burden on banks while ensuring that customers remain protected through advanced security systems.

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