KARACHI, Dec 29: The State Bank has tightened rules to prevent employees of private security agencies from getting involved in bank thefts and robberies.

The central bank says in a circular issued to all banks on Wednesday that the head of security agency would give an undertaking to the banks and development finance institutions (DFIs) at the time of renewing its contract with them for providing security.

The undertaking would be that "in the event of any act of vandalism caused due to the involvement of whatsoever nature of security firm or its guards, the security agency will be liable to make good the losses, if any, suffered by the bank/DFI".

This simply means that in case of bank thefts and robbery, the security agency providing security to the bank concerned would compensate for the losses suffered by it if the involvement of that security agency in bank theft or robbery is established.

The circular, issued by the banking policy department, also reminds banks and DFIs that while renewing the security contract with any private security agency, they shall ensure that the agency is from among the Pakistan Banks Association's approved panel of security agencies.

"In case the bank branches are providing safe deposit locker facility in areas where security agency on the PBA approved panel is not available, the bank/DFI shall carry out due diligence at the branch for the appointment of their own security guards."