Cops to issue safety guidelines for gold loan companies

The City police will soon issue safety guidelines to gold loan companies and other finance firms in the wake of increasing theft incidents at such firms.

Police Commissioner Megharik had recently convened a meeting with senior police officers to discuss the safety measures that firms need to adopt but the meeting was called off due to some reasons.

However, the commissioner will soon hold discussions with his subordinates on preparing guidelines such as installation of burglary alarms, surveillance cameras and appointment of guards, a senior police officer told Deccan Herald.

Theft cases
In less than two months, the City has witnessed two cases of theft at the Manappuram Gold Loan office in Rajarajeshwarinagar and Madivala.

Speaking to Deccan Herald, B S Lokesh Kumar, DCP (South), said lapses in security had led to a rise in the number of thefts, putting at risk many gold depositors.

“The Reserve Bank of India (RBI) has issued guidelines for private gold offices and micro-finance institutions, but most operators do not adhere to the rules. There is no clarity on the action that can be initiated against violators of Reserve Bank of India norms and hence operators do not take the guidelines seriously,” Kumar said.

Gold loan companies and other finance firms are expected to have a room built with strong cement walls, foolproof locker facilities, uninterrupted power supply, CCTV cameras, security guards and burglary alarms connected to the jurisdictional police station.

A majority of the gold loan offices lack these facilities as they usually begin functioning out of the buildings that are easily available for rent or otherwise, he added.

According to the police, most cases of theft at gold loan offices in the City occurred due to lack of security measures.

It has also come to light that many suspects often did a recce of the surroundings, learnt about loopholes in security and struck accordingly, added the police.