SC orders crackdown on digital arrests:Directs RBI to frame guidelines to deal with cyber attacks on bank accounts

The Supreme Court (SC) has asked the Reserve Bank of India (RBI) to prepare and circulate a Standard Operating Procedure (SOP) for dealing with bank accounts linked to cyber frauds, including mule accounts. Mule accounts are bank accounts that are used to siphon off money (earned through wrong means) to other bank accounts or abroad so that it becomes difficult to trace originality. Ensure speedy money restoration in bank accounts of victim, says SC Issuing a slew of directions aimed at strengthening the response to cyber-enabled financial frauds, a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana directed all states, Union Territories (UTs) and law enforcement agencies to ensure the expeditious adoption and operationalisation of the grievance redressal and money restoration modules developed for victims of such frauds. The bench also directed the RBI to provide copies of the SOP to the Registrars General of all high courts. It also asked states and UTs to undertake appropriate public awareness measures to ensure that citizens are informed about these mechanisms. SC asks for accountability The bench asked the authorities to submit a report containing state-wise and bank-wise details of grievances registered and disposed of under the cyber fraud redressal mechanism. Dispose of cases linked to freezing of bank accounts: Top Court It further directed authorities to ensure the prompt disposal of cases relating to the freezing of bank accounts in cyber fraud investigations. The bench also asked the Inter-Departmental Committee (IDC) constituted by the Centre to consult banks and financial intermediaries on measures to prevent digital arrest scams and facilitate the recovery of money defrauded from victims. Define digital arrest: SC to Centre last week The directions come a week after the apex court suggested that the Centre consider formally defining digital arrest in criminal law and treating it as a standalone offence carrying stringent punishment.