SC mandates SOPs, mechanisms to curb ‘digital arrests’, facilitate time-bound refunds
Directs Centre, States, the Reserve Bank of India and telecom authorities to put in place measures for grievance redressal and zero FIRs among
The Supreme Court on August 4, 2026, issued a comprehensive directive to the central government, state governments, the Reserve Bank of India, and telecom authorities. The order mandates the drafting of standard operating procedures (SOPs) to combat digital arrest scams and establish mechanisms for addressing grievances of victims, initiating criminal action through zero FIRs against cyber fraudsters, and expeditiously restoring monetary losses to defrauded individuals.
The court reviewed a status report submitted by the Indian Cyber Crime Coordination Centre (I4C) indicating a significant reduction in complaints against digital arrests, from 123,672 in 2024 to 16,377 in the period ending June 30, 2026. While the court acknowledged these improvements, it emphasized the need for continued monitoring.
The court noted the execution of a data-sharing memorandum of understanding between the Reserve Bank Innovation Hub and I4C, covering 123,590 branches of 69 banks. The Money Restoration Mechanism Portal has 57 participating banks, with 36,290 cases restored, involving a total amount of ₹18.05 crore. The court highlighted that the e-Zero FIR mechanism is operational in 19 states, while only 14 states have notified their Cyber Crime Coordination Centres.
Additionally, the Telecommunications (Radio Equipment Possession Authorisation) Rules, 2025, and the Telecommunications (User Identification) Rules, 2025, are under final notification. The court directed the CBI to investigate the feasibility of lowering the ₹10 crore threshold for registering digital arrest cases. In interim orders, the RBI was instructed to prepare and circulate within four weeks an SOP for banks to place temporary debit holds on mule accounts linked to money laundering and cyber fraud.
States and Union Territories were directed to develop grievance redressal and money restoration modules based on the Ministry of Home Affairs' SOP concerning the National Cyber Crime Reporting Portal and Cyber RMS. The court stipulated that the next status report should provide state-wise and bank-wise details of grievances registered and disposed of, summary restorations, and the amounts restored.
States were given four weeks to notify Cyber Crime Coordination Centres and operationalize e-Zero FIR mechanisms. The court also emphasized the urgency in dealing with cases involving frozen bank accounts arising from cyber-enabled financial frauds.
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