Introduction
The world of cash logistics is an intricate and high-stakes domain, where the safe transportation of cash and valuable assets is paramount. Their cash vans are equipped to transport large sums of money between banks, ATMs, and businesses. In short, the Cash Management Services are putting the wheels of the economy in motion on the ground.
Cash Logistics Services face challenges right from security threats to operational inefficiencies. To address them, they should rely equally on specially trained personnel and technology. In such circumstances, Video Telematics for Cash logistics has emerged as a powerful technological solution. Video Telematics for Cash Vans can provide state-of-the-art security features and enhance both the safety and efficiency of cash logistics operations.
The Growing Cash Logistics Services Market in India
According to the Home Ministry, around 8000 cash vans are estimated to be carrying Rs 15,000 crore of cash on a daily basis across the country in 2018. Data from the Finance Ministry highlights that the cash in circulation in India has more than doubled to 31.34 trillion in March 2022 from 13 trillion in 2014. This led to ever-increasing installations of ATMs.
In India, the cash logistics industry moves between Rs 20,000 crore and Rs 23,000 crore on a daily basis, which amounts to Rs 51.4 lakh crore a year at the lower end of the figure.
According to the CMS, the total addressable market (TAM) for cash logistics services is about Rs 8,000 crore in 2021. It is forecasted to go to Rs 21,000 crore by 2027, and that is almost a 2.7x increase which would lead to 17-18% growth in the market.
The significance of Cash logistics in India is indispensable. But it also faces significant security threats, including armed robberies and heists, route optimization issues, regulatory complexities, traffic congestion, etc. Video Telematics can address these concerns and enable a robust cash management service.
Video Telematics: Enhancing Fleet Management and Safety
A video telematics solution integrates internal vehicle information, encapsulates details like vehicle position, velocity, and idle duration, with video data and advanced computer technology. This will deliver a holistic view of all activities occurring both within and around a fleet vehicle.
FleetRobo’s video telematics solution offers a range of technical capabilities, including six high-resolution cameras, advanced driver assistance systems (ADAS), and a driver status monitor (DSM). It possesses built-in artificial intelligence capabilities, cloud-based storage functionality, real-time monitoring capacity, and offers remote accessibility through a mobile application.
The Necessity of Video Telematics for Cash Logistics
Fleet telematics technology has been widely adopted across industries, including transportation, logistics, and fleet management. Video Telematics for Cash logistics can serve as a comprehensive solution for addressing the unique challenges faced in the cash logistics sector.
Cash logistics is a high-risk operation where the stakes are exceptionally high. Protecting cash-in-transit from theft or tampering is a primary concern. In addition to safety, implementing video telematics for cash logistics can also help in improving operational efficiency, optimizing route optimization, and adhering mandatory safety regulations of RBI.
Cash logistics service providers benefit significantly from the implementation of video telematics for cash vans. Video telematics for cash logistics can play a crucial role in enhancing the safety, security, and efficiency of cash logistics operations.
Thus, video telematics for cash vans can open a technological gateway to address multitude of issues faced by the cash management service providers.
Navigating Unique Challenges: Cash Logistics in India’s Landscape
Cash logistics in India faces a unique set of challenges due to the country’s diverse and dynamic economic landscape, as well as its population density. Some of the key challenges faced during cash logistics in India are,
Security Threats
Cash logistics in India has witnessed a fair share of armed robberies and heists. Criminals often plan and execute sophisticated attacks, posing a significant security risk to cash logistics services. For instance, on April 18, 2022, a group of robbers snatched Rs 96.93 lakh from a cash collection van after throwing chilli powder on Sohna Road in Gurgaon.
Geographic Diversity
India’s vast geographic diversity, from bustling urban centers to remote rural areas, poses logistical challenges for cash management services.
For example, as per 2021 RBI data, States such as Delhi and Tamil Nadu have 35 or 40 ATMs for one lakh people. But in large parts of India like Bihar, West Bengal, Odisha, Rajasthan, and Madhya Pradesh, the penetration levels are around 7 or 10 or 12 or 14 ATMs per lakh population. So, the future expansion of ATMs and the associated rise in cash logistics services in these areas will bring new challenges.
The Sheer Volume of Cash transactions in India
India remains a predominantly cash-based economy. According to the India Cash Vibrancy Report 2023, at $421 billion in 2021, India saw the third-highest annual growth of 7.9% in Currency In Circulation, next only to the UK (+11.8%) and China (+10.2%).
The sheer volume of cash transactions necessitates robust Cash Management Services especially establishing secure cash transportation. At times, there are cash shortages in ATMs and banks, leading to increased pressure on cash logistics providers to replenish these machines promptly.
For example, according to RBI, ATMs have shot up from 2.34 lakh in March 2020 to 2.51 lakh by January 2022, while micro-ATMs have increased from 2.71 lakh in March 2020 to 6.4 lakh in January 2022. With increasing cash withdrawals, cash fillings into ATMs and the security and logistical threats in the cash logistics sector will increase.
Traffic Congestion and Route Optimization issues
Major Indian cities, like Bengaluru, are notorious for their traffic congestion. Cash vans often struggle to adhere to schedules due to heavy traffic, leading to operational inefficiencies.
On many occasions, accidents were caused due to violation of traffic rules. For instance, 4.3% of the accidents in India happened due to driving on the wrong side and 0.4% of the accidents happened due to jumping of the red lights. In such scenarios even if the cash vans are following safety rules, the opponent might put unnecessary delay in cash logistics services and might also create legal troubles and delays.
As per RBI, the cash vans must follow different routes for transferring cash to deviate from following the same pattern. But choosing suboptimal routes can lead to inefficiencies, threats, and cost increase. On such occasions, blindly tracking valuable assets such as cash can create a lot of trouble.
Ever Evolving Regulatory Compliance
Compliance with stringent regulations and security standards is crucial in the cash logistics industry. Maintaining compliance can be complex and costly. For example, according to the government rules all cash vans must have live GPS tracking, geo-fencing facility, and CCTV coverage.
With fleet telematics solutions gaining traction at international levels, the government and RBI might soon start recommending Video Telematics for Cash logistics.
Technological Advancements in Criminal Activity
Not only is technology evolving, but criminals are also becoming more sophisticated in their approaches. This requires constant innovation in security measures and technology from cash management services as well.
Employee Safety
Transporting and protecting cash might be a core business for cash management services but protecting the manpower is of paramount importance. The drivers and security personnel often face physical and psychological risks while handling cash and dealing with security threats.
Maximizing Security and Efficiency: FleetRobo’s Video Telematics for Cash Logistics
Personalized Training
Utilizing fleet telematics for drivers allows for an in-depth assessment of driver conduct. FleetRobo’s Video Telematics for Cash Logistics will produce driver behavior analysis reports on a weekly, monthly, and other periodic basis. This can help to improve the physical and psychological capabilities of driver and security persons involved in cash logistics solutions.
Enhanced Security
Video telematics systems provide real-time monitoring of the vehicle’s surroundings and the inside of the van. Any suspicious activity or incidents can be recorded and transmitted instantly to 24X7 Command Center. For example, if a robbery is attempted, authorities can be alerted promptly, increasing the chances of apprehending criminals and recovering stolen prestigious assets.
One can also get a real-time warning in the event of a crash, traffic violations, driver blocking the camera, driver using mobile phones while driving which is absent in the traditional remote monitoring solutions.
A Proactive Deterrence
The mere presence of video telematics for cash logistics can act as a powerful deterrent to potential criminals. Knowing that their actions are being recorded and monitored discourages attackers from attempting to rob cash vans. This proactive approach can protect the cash in Transit and devoid security threats even before they even occur.
Evidence Collection
In the unfortunate event of a security breach, video telematics systems provide valuable evidence for investigations and legal proceedings. FleetRobo’s video telematics cameras will provide Hi-resolution clear video footage that can help identify perpetrators and support law enforcement in their efforts to bring criminals to justice. Since all the data will be stored on the cloud, even if the criminals destroy the on-board equipment all the data can be easily recovered. Thereby Video Telematics for Cash Vans will be a cornerstone in the security of cash logistics operations.
Operational Efficiency
Video telematics for cash logistics is crucial in improving operational efficiency. FleetRobo’s video telematics for logistics comes with superior sim-based tracking systems. Along with, Driver Status Monitor, the cash management firm can track vehicle location, monitor driver behavior, and optimize routes in real-time. By analyzing video data, companies can identify and address operational inefficiencies, leading to fuel savings, reduced wear and tear on vehicles, and improved on-time delivery performance.
Driver Safety and Compliance
Video telematics systems can monitor driver behavior, promoting safe driving practices and adherence to traffic regulations. This not only reduces the risk of accidents but also helps maintain a positive reputation for the cash logistics company. Driver monitoring can include tracking speed, harsh braking, sudden lane changes, and other behaviors that may endanger safety.
Incident Management
Video telematics systems allow for quick response and effective incident management. In case of accidents or breakdowns, the video footage can be used to assess the situation, determine liability, and expedite the resolution process. This helps minimize downtime and operational disruptions.
Route Optimization
Real-time video data can be used to optimize routes for cash vans. By analyzing traffic conditions, road closures, and other factors, companies can ensure that cash vans take the most efficient routes, reducing transit times and improving overall logistics operations.
Conclusion
Video telematics for cash vans is a critical technology for the cash logistics industry, as it addresses the unique challenges of security, operational efficiency, and compliance which can significantly improve daily cash replenishments. With FleetRobo you can relax that you are using the right telematics services for your cash logistics operation which can benefit both cash logistics and the broader economy.
The benefits of telematics can be expanded into other services of cash logistics firms such as Bullion Management, ATM Cash Management, Providing Doorstep Banking Services, etc. In short, FleetRobo’s Video Telematics for Cash logistics can act as a Trustworthy “Third Eye” for cash logistics services.
To get more details please visit the FleetRobo’s website.