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SC Orders RBI to Combat Cyber Fraud Accounts
4 Aug
Summary
- Supreme Court directs RBI to create SOP for cyber fraud bank accounts.
- States and UTs to raise public awareness on fraud mechanisms.
- Authorities must report grievance data for cyber fraud redressal.
The Supreme Court recently mandated the Reserve Bank of India (RBI) to create and circulate a Standard Operating Procedure (SOP) for handling bank accounts linked to cyber fraud. This directive specifically targets accounts used in digital financial scams, including 'mule accounts'.
A bench led by the Chief Justice issued several directions to bolster responses to cyber-enabled financial frauds. States, Union Territories, and law enforcement agencies must promptly implement grievance redressal and money restoration modules for victims.
The court also instructed the RBI to share the SOP with High Court Registrars General. Additionally, states and UTs are required to launch public awareness campaigns to inform citizens about available fraud reporting and recovery mechanisms.
High Courts are directed to inform their respective courts about these modules. The bench further sought state-wise and bank-wise reports on grievances registered and resolved under the cyber fraud redressal system, emphasizing the need for faster disposal of cases involving frozen bank accounts.
