The Supreme Court has ordered the MHA to implement the RBI's SOP for cyber fraud nationwide, with rules to be notified in two weeks. The court highlighted bank officials' involvement in such scams and stressed strict accountability for banks.
The Supreme Court on Monday directed the Ministry of Home Affairs (MHA) to formally adopt and implement, across the country, the Standard Operating Procedure (SOP) issued by the Reserve Bank of India (RBI) on January 2, 2026, to ensure effective inter-agency coordination in cases of cyber-enabled frauds, including identifying the location of defrauded parties. The Court further ordered that the necessary rules for implementation be notified within two weeks.
In this context, the Court noted that the Reserve Bank of India has already issued the SOP authorising banks to place temporary debit holds on accounts as a preventive measure against cyber-enabled fraud.
SC Flags Connivance by Bank Officials
During the hearing of the suo motu proceedings on digital arrest scams on Monday, the Supreme Court also flagged that lapses and active connivance by bank officials have contributed to such fraudulent transactions. A Bench headed by Chief Justice of India (CJI) Surya Kant, along with Justice Joymalya Bagchi, stressed that banks must be held to strict standards of accountability while handling cases involving cyber-enabled fraud.
"We have seen bank officials are completely hand in gloves with the accused in these cases of digital arrest," CJI Kant remarked while hearing the matter.
Inter-Agency Coordination Mandated
The Bench also issued directions to ensure effective coordination among enforcement agencies and regulators. It directed the CBI to identify digital arrest cases, asked the RBI to take appropriate action at the issuing banks' level, and instructed the Ministry of Electronics and Information Technology to ensure time-bound compliance by intermediaries.
During the hearing, the Court was informed that, as part of measures to address digital arrest cases, a memorandum of understanding (MoU) and a standard operating protocol (SOP) have been prepared. Taking note of this, the Bench directed their swift implementation.
It noted that the RBI has framed an SOP requiring banks to take specific actions, including placing temporary debit holds to prevent cyber-enabled frauds. The Bench directed the Union Ministry of Home Affairs to formally adopt and implement the SOP dated January 2, 2026, across the country to enable inter-agency coordination and identification of the location of defrauded parties, and ordered that the necessary rules be notified within two weeks.
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