FDI IN CASH MANAGEMENT SERVICES GETS GREEN LIGHT

The government has allowed foreign direct investment  (FDI) in cash management services. These include transport of valuables including cash, foreign currency, jewellery, precious metals, bullion, credit and debit cards for banks. It also includes ATM cash replenishment services and valuable management. So far these services for banks both private and public have been managed by Indian security companies. After being wary of allowing FDI into these services for few years, the government and RBI have decided to allow foreign firms to join in and bring in their world-class expertise in cash management.