Supreme Court directs RBI (ANI image) The Supreme Court, on Tuesday, directed banks, financial intermediaries, regulators and law enforcement agencies to work together to curb the rising menace of “digital arrest” scams and improve the recovery of money lost to cyber fraud.Hearing a suo motu matter ‘In Re: Victims of Digital Arrest Related to Forged Documents’, the court called for a coordinated institutional response, including faster grievance redressal, stronger mechanisms to restore victims’ money and wider public awareness campaigns.The apex court directed the Reserve Bank of India (RBI) to formulate a Standard Operating Procedure (SOP) on mule accounts within four weeks, PTI cites.Mule accounts are bank accounts used by cybercriminals to receive, transfer or route money obtained through fraud. The court said stronger systems are needed to identify, freeze and prevent the misuse of such accounts.States directed to strengthen cyber fraud responseThe Supreme Court has also directed all states to operationalise cyber fraud grievance redressal and money restoration mechanisms so that complaints can be acted upon promptly and recovery efforts can begin without delay.Join conversationView All Comments →Share your thoughts in the commentsInsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig DevelopmentPost CommentBe respectful · TOI community guidelinesThe apex court directed the Centre to examine the feasibility of creating a shared liability and victim compensation framework for cyber fraud cases.The court also asked an Inter-Departmental Committee to consult banks and financial intermediaries on measures to tackle digital arrest scams. It said institutions must work together to detect fraudulent transactions early and improve the chances of recovering money for victims.The step comes a week after the Supreme Court suggested that the Centre consider formally defining ‘digital arrest’ as a separate offence under criminal law, with stringent penalties for those found guilty.Get the latest India News and Live updates. Download the TOI app.End of ArticleFollow Us On Social MediaVideosUdhayanidhi Stalin Released Hours After Arrest Over ‘Double Meaning’ RemarkSC Extends Section 498A Protection To Women In Marriage-Like Live-In RelationshipsWhatsApp Puts Multiple Accounts Under Review, Users Locked Out As Company Admits Mistakes Can HappenUdhayanidhi Stalin Detained Over Trisha Row |FIR, Political Storm & “I’ll Face It Legally” ExplainedPulwama Man Held With Hand Grenade, Anti-National Posters After Kulgam Terror AttackHigh-Level Probe Ordered As Security Forces Launch Massive Valley-Wide Manhunt | WatchSC Clarifies ‘Criminal Antecedents’ Caveat;CJP Demands Immediate Withdrawal Of FIRs Against StudentsAssam Govt Launches Relief Package As Over 1.36 Lakh People Remain Flood Affected | WatchIndian Parl Panel Grills Meta Over PM Modi Video Takedown, Seeks Mark Zuckerberg’s ApologyBankipur Shock, Datia Loss: BJP Suffers Twin Setback, But Why Isn’t It Good News For Opposition?123PhotostoriesTamannaah Bhatia turns heads with 3 dramatically different looksBleeding gums may be warning you about more than your teeth: Doctor explains the link to heart disease, stroke and diabetesThe way you react today becomes your child’s inner voice tomorrow: 7 everyday moments that shape your child’s future more than any parenting advice ever could13 iconic ice creams from around the world every dessert lover should tryHow to talk to toddlers to nurture intelligence: Science-backed tips5 hair oils that may be making your dandruff worse5 signs your partner is falling out of love with you: What to watch for before it’s too lateFrom Collarwali to Charger: 5 legendary tigers of IndiaNot lemon, baking soda or detergent: This one ingredient can remove foul smell permanently from water bottles and lunch boxesThe 7 germiest things in your hotel room that most guests touch without thinking123Hot PicksCJP nationwide tourGold Rate TodayMJPRU resultBSE SensexRBI FD ruleManmohan Singh LiberhanKarnataka cabinet expansionUdhayanidhi StalinD Y PatilTop TrendingFaridabad MurderUdhayanidhi StalinPanchkula Army Captain Wife DeathPappu Yadav Slipper AttackPM ModiKarnataka Cabinet ExpansionTrisha KrishnanD Y Patil DeathBypoll Election Result 2026Shradha Singh

Supreme Court directs RBI (ANI image) The Supreme Court, on Tuesday, directed banks, financial intermediaries, regulators and law enforcement agencies to work together to curb the rising menace of “digital arrest” scams and improve the recovery of money lost to cyber fraud.Hearing a suo motu matter ‘In Re: Victims of Digital Arrest Related to Forged Documents’, the court called for a coordinated institutional response, including faster grievance redressal, stronger mechanisms to restore victims’ money and wider public awareness campaigns.The apex court directed the Reserve Bank of India (RBI) to formulate a Standard Operating Procedure (SOP) on mule accounts within four weeks, PTI cites.Mule accounts are bank accounts used by cybercriminals to receive, transfer or route money obtained through fraud. The court said stronger systems are needed to identify, freeze and prevent the misuse of such accounts.States directed to strengthen cyber fraud responseThe Supreme Court has also directed all states to operationalise cyber fraud grievance redressal and money restoration mechanisms so that complaints can be acted upon promptly and recovery efforts can begin without delay.Join conversationView All Comments →Share your thoughts in the commentsInsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig DevelopmentPost CommentBe respectful · TOI community guidelinesThe apex court directed the Centre to examine the feasibility of creating a shared liability and victim compensation framework for cyber fraud cases.The court also asked an Inter-Departmental Committee to consult banks and financial intermediaries on measures to tackle digital arrest scams. It said institutions must work together to detect fraudulent transactions early and improve the chances of recovering money for victims.The step comes a week after the Supreme Court suggested that the Centre consider formally defining ‘digital arrest’ as a separate offence under criminal law, with stringent penalties for those found guilty.Get the latest India News and Live updates. Download the TOI app.End of ArticleFollow Us On Social MediaVideosUdhayanidhi Stalin Released Hours After Arrest Over ‘Double Meaning’ RemarkSC Extends Section 498A Protection To Women In Marriage-Like Live-In RelationshipsWhatsApp Puts Multiple Accounts Under Review, Users Locked Out As Company Admits Mistakes Can HappenUdhayanidhi Stalin Detained Over Trisha Row |FIR, Political Storm & “I’ll Face It Legally” ExplainedPulwama Man Held With Hand Grenade, Anti-National Posters After Kulgam Terror AttackHigh-Level Probe Ordered As Security Forces Launch Massive Valley-Wide Manhunt | WatchSC Clarifies ‘Criminal Antecedents’ Caveat;CJP Demands Immediate Withdrawal Of FIRs Against StudentsAssam Govt Launches Relief Package As Over 1.36 Lakh People Remain Flood Affected | WatchIndian Parl Panel Grills Meta Over PM Modi Video Takedown, Seeks Mark Zuckerberg’s ApologyBankipur Shock, Datia Loss: BJP Suffers Twin Setback, But Why Isn’t It Good News For Opposition?123PhotostoriesTamannaah Bhatia turns heads with 3 dramatically different looksBleeding gums may be warning you about more than your teeth: Doctor explains the link to heart disease, stroke and diabetesThe way you react today becomes your child’s inner voice tomorrow: 7 everyday moments that shape your child’s future more than any parenting advice ever could13 iconic ice creams from around the world every dessert lover should tryHow to talk to toddlers to nurture intelligence: Science-backed tips5 hair oils that may be making your dandruff worse5 signs your partner is falling out of love with you: What to watch for before it’s too lateFrom Collarwali to Charger: 5 legendary tigers of IndiaNot lemon, baking soda or detergent: This one ingredient can remove foul smell permanently from water bottles and lunch boxesThe 7 germiest things in your hotel room that most guests touch without thinking123Hot PicksCJP nationwide tourGold Rate TodayMJPRU resultBSE SensexRBI FD ruleManmohan Singh LiberhanKarnataka cabinet expansionUdhayanidhi StalinD Y PatilTop TrendingFaridabad MurderUdhayanidhi StalinPanchkula Army Captain Wife DeathPappu Yadav Slipper AttackPM ModiKarnataka Cabinet ExpansionTrisha KrishnanD Y Patil DeathBypoll Election Result 2026Shradha Singh


SC orders nationwide action against 'digital arrest' scams; tells RBI to share SOP on 'mule accounts'
Supreme Court directs RBI (ANI image)

The Supreme Court, on Tuesday, directed banks, financial intermediaries, regulators and law enforcement agencies to work together to curb the rising menace of “digital arrest” scams and improve the recovery of money lost to cyber fraud.Hearing a suo motu matter ‘In Re: Victims of Digital Arrest Related to Forged Documents’, the court called for a coordinated institutional response, including faster grievance redressal, stronger mechanisms to restore victims’ money and wider public awareness campaigns.The apex court directed the Reserve Bank of India (RBI) to formulate a Standard Operating Procedure (SOP) on mule accounts within four weeks, PTI cites.Mule accounts are bank accounts used by cybercriminals to receive, transfer or route money obtained through fraud. The court said stronger systems are needed to identify, freeze and prevent the misuse of such accounts.

States directed to strengthen cyber fraud response

The Supreme Court has also directed all states to operationalise cyber fraud grievance redressal and money restoration mechanisms so that complaints can be acted upon promptly and recovery efforts can begin without delay.

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