The Supreme Court on Tuesday directed the Reserve Bank of India (RBI) to issue a standard operating procedure (SOP) for banks within four weeks to address digital arrests. The Court also instructed an inter-departmental committee to review a shared liability and victim compensation framework related to digital fraud cases, according to medianama.com.
The directions were issued by a Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana during a suo motu hearing on digital arrests. The case originated in October 2025 after a senior citizen couple from Ambala reported being defrauded of Rs 1.05 crore by scammers impersonating CBI, Enforcement Directorate, and judicial officials. The Court noted the use of forged court orders and threats of arrest as serious concerns and authorised the CBI in December 2025 to conduct a pan-India investigation into digital arrests and the role of banks in facilitating mule accounts.
The Supreme Court highlighted that existing mechanisms require wider adoption, faster disposal, and continued follow-up to effectively combat digital fraud. The RBI’s SOP for banks aims to standardise responses to such cases, while the inter-departmental committee’s review of compensation frameworks seeks to protect victims financially. This move follows growing concerns over digital frauds involving impersonation and coercion, which have increasingly targeted vulnerable individuals.
The Court’s order mandates the RBI to issue the SOP within four weeks, setting a clear deadline for regulatory action. The inter-departmental committee tasked with examining liability and compensation frameworks will provide recommendations to strengthen protections for victims of digital arrests, marking a significant step in the judiciary’s efforts to curb digital fraud.