Lagatar24 Desk
New Delhi: The Supreme Court has directed the implementation of the Reserve Bank of India’s (RBI) Standard Operating Procedure (SOP) across the country to tackle rising cyber fraud cases, including “digital arrest” scams. The Attorney General informed the court that RBI has already prepared a detailed SOP for banks to follow.
Court Took Suo Motu Cognisance of Cyber Fraud Cases
The Supreme Court began hearing the matter after taking suo motu cognisance of increasing cyber cheating incidents. The case was heard by a bench comprising Chief Justice Suryakant, Justice Joymalya Bagchi, and Justice N.V. Anjaria.
Banks Told to Develop Tech for Large Transaction Alerts
The court observed that it is the responsibility of banks to develop new technology systems to issue alerts for suspicious high-value transactions during cyber fraud or digital arrest cases. The bench pointed out that pensioners generally make small transactions of around ₹10,000 to ₹20,000, but if suddenly such accounts show transactions of ₹50 lakh or ₹1 crore, banks must immediately become alert.
RBI SOP Allows Temporary Holding of Transactions
Attorney General R. Venkataramani told the court that RBI’s SOP includes provisions that allow banks to temporarily hold transactions from a security standpoint in suspicious cases. The Supreme Court then directed the Ministry of Home Affairs to ensure the RBI SOP is implemented nationwide.
