SOPs, Compensation Framework: Top Court's New Directions On 'Digital Arrest'

A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana passed the directions while hearing a suo motu case on cyber-enabled financial frauds and digital arrest scams.

04 Aug 2026, 15:30 · www.ndtv.com

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The Supreme Court directed RBI to issue SOPs for banks on cyber frauds within four weeks
States must set up Cyber Crime Coordination Centres and implement e-Zero FIR in four weeks
Court asked for a grievance redressal system and victim compensation framework for digital scams

How can I protect myself from falling for a digital arrest scam?

New Delhi: The Supreme Court on Tuesday issued a host of directions aimed at strengthening the country's response to the growing menace of "digital arrest" scams, directing the Reserve Bank of India (RBI) to put in place a standard operating procedure (SOP) for banks within four weeks and asking the Centre to examine a compensation framework.

A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana passed the directions while hearing a case on cyber-enabled financial frauds and digital arrest scams.

The court heard submissions from Attorney General R Venkataramani, Solicitor General Tushar Mehta and amicus curiae, senior advocate N S Nappinai.

"The mechanism already put in place requires wide adoption, faster disposal and continued follow-up," the court observed.

RBI Asked To Adopt SOP

The Supreme Court directed the RBI to formally adopt and circulate, within four weeks, SOPs prescribing the action banks must take to place temporary debit holds on accounts linked to cyber-enabled financial fraud.

The SOP must also include: a grievance redressal mechanism, a money restoration module for victims and public awareness measures explaining both mechanisms

The court also directed Registrars General of all High Courts to inform courts and adjudicating authorities dealing with frozen bank accounts about the grievance redressal mechanism. People whose accounts have been frozen should be encouraged to first use this mechanism.

Directions To States

The Supreme Court directed all states and Union Territories to notify and operationalise State Cyber Crime Coordination Centres within four weeks.

It also asked them to implement the e-Zero FIR mechanism in consultation with the Indian Cyber Crime Coordination Centre (I4C), with assistance from the Ministry of Home Affairs.

The authorities were also directed to ensure speedy disposal of cases involving freezing of bank accounts linked to cyber fraud.

The court asked the inter-departmental committee to issue advisories to states, Union Territories and government departments for extensive awareness campaigns on preventing cyber crime and digital arrest scams.

The committee was also directed to coordinate with banks on measures to prevent digital arrest scams, facilitate recovery of stolen funds and assist investigations.

Recognising the need to strengthen protection for victims, the Supreme Court directed the inter-departmental committee to examine the feasibility of introducing a shared liability and victim compensation framework for digital arrest scams.

Legal Services Committees across the country were also directed to conduct awareness programmes on cyber security, cyber crime prevention and the mechanisms available for recovery of defrauded money.

Also read: Ex-Bank Manager Duped Of Rs 2.2 Crore In Ghaziabad In Digital Arrest Scam

CBI Threshold, Telecom Restrictions Under Review

The court recorded that the inter-departmental committee has requested the Central Bureau of Investigation (CBI) to examine lowering the existing monetary threshold for taking over cyber fraud investigations.

It also asked the committee to consider whether multiple fraud cases linked to the same organised network can be aggregated to meet the threshold for CBI intervention.

Separately, the Ministry of Electronics and Information Technology (MeitY), the Department of Telecommunications (DoT) and the I4C have been directed to examine the feasibility of introducing time-based restrictions on telecom services for audio and video calls as a possible safeguard against digital arrest scams.

The authorities have been asked to place a brief note before the Supreme Court on the proposal's feasibility, utility and possible alternatives.

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