Supreme Court orders coordinated response to digital arrest scams

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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