Several banks, including the State Bank of India, Punjab National Bank, and Bank of India, had challenged the 2013 ruling. They argued that it was impossible to deploy security guards at every ATM at all times due to the sheer number of machines in operation. The Supreme Court had initially stayed the high court’s directive in December 2016, and on Tuesday, it permanently quashed the order.
New Delhi: Today, 11th Feb, The Supreme Court of India has ruled that banks are not required to station security guards at all ATMs 24×7 to enforce orderly queues and ensure that only one customer enters at a time.
This decision came from a bench comprising Justices Bhushan R Gavai and K Vinod Chandran, as they overturned a 2013 directive issued by the Gauhati High Court.
ALSO READ: Calcutta HC Orders PNB to Pay Rs. 3 Lakh for Inhuman Treatment of Disabled Bank Official
The high court earlier ordered banks to place security guards at all ATMs to prevent fraud and maintain order. However, the Supreme Court struck down this directive, accepting the arguments made by the Union government and several banks that round-the-clock security was impractical.
Several banks, including the State Bank of India, Punjab National Bank, and Bank of India, had challenged the 2013 ruling. They argued that it was impossible to deploy security guards at every ATM at all times due to the sheer number of machines in operation. The Supreme Court had initially stayed the high court’s directive in December 2016, and on Tuesday, it permanently quashed the order.
ALSO READ: Vijay Mallya Moves Karnataka High Court, Claims Banks Recovered His Debt Multiple Times
The court noted the submissions made by Solicitor General Tushar Mehta, who represented the Union government and several banks. He emphasized that requiring security guards at every ATM was not practical.
“In Assam alone, banks operate around 4,000 ATMs, making the directive logistically impossible,” he said.
Instead, he pointed out that the global best practice for ATM security relies more on CCTV surveillance than on physical security personnel.
Background
The Gauhati High Court had issued the directive following a suo motu public interest litigation (PIL). The case was initiated after a newspaper report highlighted an incident where a customer lost Rs.35,000 from his account just minutes after withdrawing Rs.5,000 from an ATM. Taking this matter seriously, the high court had implemented several security measures based on recommendations from the Assam Director General of Police.
These measures included continuous CCTV surveillance, alarm systems to detect non-functional cameras, and restrictions on customers wearing helmets, mufflers, or caps inside ATM rooms. However, the Supreme Court did not interfere with these security measures and only struck down the mandate requiring 24×7 security guards.
During the proceedings, Mehta pointed out that even when the Gauhati High Court modified its order to require security guards only during operational hours, it still posed challenges.
“ATMs remain accessible 24×7, so this directive did not solve the issue,” he explained.
Additionally, he informed the court that both the Reserve Bank of India (RBI) and the Union Ministry of Finance supported the banks’ position.
ALSO READ: Supreme Court: Bank Employees’ Interest-Free Loans Liable for Taxation
“Both RBI and the finance ministry agree that round-the-clock security guards are unnecessary,” he said.
However, he clarified that banks had complied with other security guidelines prescribed by the high court.
With this ruling, the Supreme Court provided much-needed clarity for banks, ensuring that they can focus on enhancing ATM security through modern surveillance technology rather than relying on physical security personnel at every location.
