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 suspected to be linked to cyber fraud.
The apex court also issued a series of directions to states, Union Territories, banks and law enforcement agencies to strengthen grievance redressal systems, speed up the restoration of money lost in cyber fraud and improve coordination in handling digital financial crimes.
Editorial Insight
Key Highlights
Supreme Court directs RBI to prepare SOP for mule accounts.
States and banks asked to strengthen cyber fraud grievance mechanisms.
Faster restoration of defrauded money ordered.
State-wise and bank-wise reports on cyber fraud sought.
Pilot project proposed to link fuel sales with valid motor insurance.
ANPR-based insurance verification to be explored.
The Court instructed the RBI to provide copies of the SOP to the Registrars General of all High Courts, while directing states and Union Territories to operationalise grievance redressal and money restoration modules and launch public awareness campaigns on cyber fraud.
The Bench also sought state-wise and bank-wise reports on cyber fraud complaints and their resolution. It directed authorities to expedite cases involving frozen bank accounts and asked the Inter-Departmental Committee to consult banks and financial intermediaries on preventing digital arrest scams and improving recovery of defrauded money.
In a separate direction, the Supreme Court asked the Central Government to develop a pilot project linking fuel sales with valid third-party motor insurance. The Court suggested that uninsured vehicles could be denied fuel until insurance coverage is obtained.
Editorial Analysis
Why This Matters
The directions aim to strengthen India's response to cybercrime, improve protection for victims of online financial fraud and enhance road insurance compliance through technology-driven enforcement.
The Bench of Justices Sanjay Karol and Prashant Kumar Mishra observed that nearly 56% of vehicles on Indian roads are uninsured and described the situation as "shocking." It also directed the Insurance Regulatory and Development Authority of India (IRDAI) and the Centre to pilot Automatic Number Plate Recognition (ANPR)-based insurance verification to improve compliance with the Motor Vehicles Act.
