State Transport Commissioner S Sreejith said the department would impose penalties on traffic rule violators from next month.
Footage from the bus shows how a fellow traveller lifted Rs 25,000 from a woman's handbag at Ottapalam.
The liquor outlets of the Kerala State Beverages (Manufacturing & Marketing) Corporation Ltd or Bevco will only have cameras for surveillance from this Christmas onwards.
The cameras mounted on the top of the vehicle are aimed at capturing images that could help in maintaining law and order, and stop traffic law violations.
The decision to install the cameras at a cost of Rs 667 crore was taken by the state cabinet on October 22 under the Nirbhaya Fund - Safe City Project.
Underwater cameras will be deployed to capture images of curves and blocks on the river bed.