SC Asks RBI To Frame SOP For Mule Accounts, Cyber Fraud-Linked Bank Accounts

NEW DELHI, Aug 5: The Supreme Court has directed the Reserve Bank of India (RBI) to prepare and circulate a standard operating procedure (SOP) for dealing with mule accounts and bank accounts linked to cyber fraud, while issuing a series of directions to states, Union Territories, law enforcement agencies and banks to strengthen grievance redressal and expedite recovery of defrauded money.

The apex court directed the RBI to provide copies of the SOP to the Registrars General of all high courts and asked states, Union Territories and law enforcement agencies to ensure the expeditious adoption and operationalisation of grievance redressal and money restoration modules.

The court also directed states and Union Territories to take steps to create public awareness about the modules and asked the Registrars General of all high courts to apprise subordinate courts of their availability.

It sought state-wise and bank-wise data on grievances registered and resolved, while directing authorities to expedite cases involving frozen bank accounts. The court also asked the Inter-Departmental Committee to consult banks and other intermediaries on measures to prevent digital arrest scams and facilitate recovery of defrauded money.

In a separate direction, the Supreme Court asked the Centre to develop a pilot project linking fuel sales with valid third-party motor insurance, proposing that uninsured vehicles be denied fuel at petrol pumps until they obtain the mandatory coverage.

A bench of Justices Sanjay Karol and Prashant Kumar Mishra noted that nearly 56 per cent of vehicles on Indian roads are uninsured and termed the situation “shocking”.

The court directed the Insurance Regulatory and Development Authority of India (IRDAI) and the Centre to pilot an Automatic Number Plate Recognition (ANPR)-based insurance verification system to identify uninsured vehicles and improve compliance with the Motor Vehicles Act. (Agencies)