Pvt finance firms giving too hoots to security

KOCHI: The bank robbery at the Tirupur branch of Mini Muthoot Bank is an eye-opener for many who take loan by pledging their valuables as security. It is often found that many private finance companies and banks lack proper security.One of the major points before keeping security or deposit is to ask the bank whether they provide any kind of insurance on the deposits. According to RBI rules, a bank is responsible for deficiency in service for lack of security on its premises and loss caused to customers accordingly. This is on the ground that ensuring the safety of the money to be deposited and/or withdrawn inside the bank premises is implicitly a part of the service rendered by a bank to a customer. Banks are not bound to insure the security taken for a loan unless the loan agreement provides for insurance and as such, failure to insure does not amount to deficiency in service.According to a top police official, who demanded anonymity, said that it is a common fact that many private financial companies and banks are vulnerable to robbery and theft. “The financial institutions and private banks are at high risk of robbery and theft. The police have decided to beef up the security of these institutions. The DGP has come out with a circular mentioning that the police official can conduct security inspection at places where valuable properties are kept or places of public importance which face great security threat. On the basis of this, the police will keep a close tab on such places,” he said. Muthoot Finance Group chief vigilance officer A I Varghese said that his group has taken all the necessary measures to tackle such incidents. But he added that even then cent percent safety assurance cannot be given. “We have hi-tech facilities like 24-hour active CCTV cameras, automatic closing doors to prevent burglars from entering the bank premises, emergency siren to alert the cops if any untoward incidents take place. We also place well-trained security men at our branches and at sensitive areas. We provide additional guards even during night. But cent per cent safety cannot be claimed as we can’t say how they operate,” said A I Varghese.