Digital fraud like 'theft': Supreme Court docket asks Centre to border SOPs

The Supreme Court docket on Monday directed the Centre to draft normal working procedures (SOPs) in session with the Reserve Bank of India (RBI), banks and different authorities for well timed actions towards digital fraud, reported PTI.

A bench comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and NV Anjaria issued the instructions whereas listening to suo motu case on digital arrest scams.

The court docket described such frauds as “theft or dacoity”. It noticed that these scams have brought on losses exceeding ?52,000 crore for Indians, an quantity bigger than the annual budgets of some smaller states. It additional added that the banks ought to develop mechanisms to alert the purchasers to cease large-scale transactions being undertaken from their accounts.

“The issue is banks are extra into enterprise mode, and naturally so, and in doing that, what they’re changing into, both innocently or connivingly, platforms by which there’s a swift and seamless transmission of stolen proceeds of crime,” Justice Bagchi noticed, reported LiveLaw.

Including to it, CJI Kant mentioned, “Within the over-anxiety of constructing earnings, banks should realise they’re trustees of public cash. Folks have deposited as a result of they belief the banks. These banks have gotten an enormous legal responsibility to the general public. The Courts have gotten their restoration brokers. They grant loans recklessly after which you’ve gotten NCLAT, solely to get well cash for them!”

The bench additional directed the Ministry of Residence Affairs (MHA) to contemplate the RBI’s SOP together with related SOPs or selections issued by the Division of Telecommunications, and to organize a draft memorandum of understanding (MoU) inside 4 weeks to deal with such offences successfully.

The Supreme Court additionally directed the RBI, the Division of Telecommunications and different authorities to carry a joint assembly to develop a framework for compensating victims of digital arrest scams. It mentioned a sensible and liberal method ought to be adopted whereas deciding compensation and listed the matter for additional listening to after 4 weeks.

Final month, the Ministry of Residence Affairs instructed the Supreme Court docket that it had arrange a high-level panel to look at points associated to digital arrest scams. The transfer adopted after the apex court docket, in December 2025, sought views from Union ministries on the way to take care of cybercrime instances.

The committee includes officers from the Ministry of Electronics and Data Know-how, Ministry of Exterior Affairs, Division of Monetary Providers, Ministry of Regulation and Justice, Ministry of Shopper Affairs, the RBI, the Central Bureau of Investigation, the Nationwide Investigation Company, Delhi police and the Indian Cyber Crime Coordination Centre. (With inputs from PTI and LiveLaw.)