Supreme Court orders coordinated response to digital arrest scams
The Supreme Court ordered a coordinated nationwide response to digital arrest scams, directing banks, financial intermediaries, regulators and law enforcement to cooperate to prevent fraud and help victims recover lost funds. It asked an inter-departmental committee to consult banks and intermediaries and required the Reserve Bank of India to frame a standard operating procedure on mule accounts within four weeks. States were told to operationalise cyber fraud grievance and money restoration mechanisms and adopt the e-Zero FIR system, while the Centre must examine a shared liability and victim compensation framework to address losses from cyber fraud.
RBI must frame mule account SOP within four weeks
Context
Digital arrest scams and related online fraud have grown and evaded fragmented responses. The court ordered coordinated action and set deadlines; agencies may next issue SOPs and new compensation rules as directed.
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