RBI Told to Frame Nationwide Cyber Fraud SOP
The Supreme Court has directed the Reserve Bank of India to establish a uniform nationwide protocol for dealing with bank accounts linked to cyber-enabled financial fraud. The order forms part of broader measures aimed at combating digital arrest scams and improving the recovery of stolen money.
RBI Cyber Fraud SOP Ordered
A three-judge bench headed by Chief Justice Surya Kant directed the RBI to prepare and circulate a standard operating procedure within four weeks. The protocol will cover mule accounts, suspected money-laundering accounts and other bank accounts used to receive or transfer proceeds from online fraud.
The final SOP must also be provided to the registrar generals of every High Court. Courts and adjudicating authorities handling account-freezing disputes will then be informed about the available grievance mechanisms.
Digital Fraud Victim Redressal Measures
The Supreme Court directed all states, Union Territories and law enforcement agencies to quickly operationalise grievance redressal and money restoration modules created under the national cybercrime framework.
These systems are intended to assist victims, coordinate the freezing of suspected funds and accelerate the return of recovered money. Authorities were also asked to ensure that disputes concerning frozen bank accounts are resolved without unnecessary delay.
The directions were issued while the court considered a suo motu case concerning victims of digital arrest scams involving forged documents and fraudulent demands for money.
States Told to Strengthen Cybercrime Response
States that have not established Cyber Crime Coordination Centres must notify them within four weeks. They were also directed to adopt the e-Zero FIR system in consultation with the Indian Cyber Crime Coordination Centre.
The court called for greater public awareness about digital arrest scams and available reporting channels. An inter-departmental committee will consult banks and online intermediaries on technological safeguards, fraud prevention, victim compensation and shared responsibility. The court is scheduled to review progress through a consolidated status report on September 16.
