The Supreme Court has directed the Reserve Bank of India to prepare and circulate a standard operating procedure for handling bank accounts linked to cyber fraud. The order focuses on a more uniform response to digital fraud cases, especially where the banking system is used to move or receive suspicious funds.
A key part of the court’s direction relates to mule accounts, which are often flagged in cyber fraud investigations. By asking RBI to frame an SOP, the court appears to be pushing for a common process that banks and related authorities can follow when such accounts are identified.
The court also asked all states and Union Territories to move quickly on grievance redressal measures tied to cyber fraud complaints. That step is aimed at improving how victims’ complaints are handled and reducing delays in the response to online financial crime.
The directions underline growing concern over digital fraud in India and the need for coordination between the banking regulator, states and enforcement systems. A standard procedure from RBI, along with faster grievance handling across states and UTs, could help create a more consistent framework for tackling cyber fraud and mule account misuse.
