Frame SOPs to curb ‘digital arrest’ scams: SC
“As per the fourth status report, a data-sharing MoU between the Reserve Bank Innovation Hub and I4C was executed on May 11, 2026. The grievance redressal mechanism portal now covers 1,23,590 branches of 69 banks. Additionally, the Money Restoration Mechanism Portal has 57 participating banks and covers all 36 States and Union Territories, with restoration completed in 36,290 cases, involving an aggregate amount of ₹18.05 crore,” the court noted.The court said the e-Zero FIR mechanism was functional in 19 States, while only 14 States had notified their State Cyber Crime Coordination Centres. Similarly, the Telecommunications (Radio Equipment Possession Authorisation) Rules, 2025 had been notified, while the Telecommunications (User Identification) Rules, 2025 was at the final stage of notification.
“As far as the CBI’s investigation is concerned, the report reveals that the agency has presently registered 10 digital arrest cases and several connected cases. In one investigation, it identified 238 victims, 67 first-layer bank accounts, transactions of approximately ₹80 crore, and conducted searches at 93 locations across 16 States,” the court said.
The court directed the RBI to prepare and circulate within four weeks a Standard Operating Procedure (SOP) for banks for placing temporary debit holds on mule accounts linked to money laundering activity and cyber-enabled fraud. A copy of the SOP shall be furnished to the Registrars-General of High Courts. The States and Union Territories were directed to frame modules for grievance redressal and money restoration as per the Ministry of Home Affairs’ SOP concerning the National Cyber Crime Reporting Portal and Cyber RMS.
States have been asked to notify Cyber Crime Coordination Centres and e-Zero FIRs within four weeks.
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