Digital fraud like 'robbery': Supreme Court asks Centre to frame SOPs
The Supreme Court observed that digital scams have caused losses exceeding ?52,000 crore for Indians, an amount larger than the annual budgets of some smaller states
 "Digital fraud like 'robbery': Supreme Court asks Centre to frame SOPs")
The Supreme Court on Monday directed the Centre to draft standard operating procedures (SOPs) in consultation with the Reserve Bank of India (RBI), banks and other authorities for timely actions against digital fraud, reported PTI.
A bench comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and NV Anjaria issued the directions while hearing suo motu case on digital arrest scams.
The court described such frauds as "robbery or dacoity". It observed that these scams have caused losses exceeding ?52,000 crore for Indians, an amount larger than the annual budgets of some smaller states. It further added that the banks should develop mechanisms to alert the customers to stop large-scale transactions being undertaken from their accounts.
"The problem is banks are more into business mode, and naturally so, and in doing that, what they are becoming, either innocently or connivingly, platforms through which there is a swift and seamless transmission of stolen proceeds of crime," Justice Bagchi observed, reported LiveLaw.
Adding to it, CJI Kant said, "In the over-anxiety of making profits, banks must realise they are trustees of public money. People have deposited because they trust the banks. These banks are becoming a huge liability to the public. The Courts are becoming their recovery agents. They grant loans recklessly and then you have NCLAT, only to recover money for them!"
The bench further directed the Ministry of Home Affairs (MHA) to consider the RBI’s SOP along with similar SOPs or decisions issued by the Department of Telecommunications, and to prepare a draft memorandum of understanding (MoU) within four weeks to tackle such offences effectively.
The Supreme Court also directed the RBI, the Department of Telecommunications and other authorities to hold a joint meeting to develop a framework for compensating victims of digital arrest scams. It said a practical and liberal approach should be adopted while deciding compensation and listed the matter for further hearing after four weeks.
Last month, the Ministry of Home Affairs told the Supreme Court that it had set up a high-level panel to examine issues related to digital arrest scams. The move followed after the apex court, in December 2025, sought views from Union ministries on how to deal with cybercrime cases.
The committee comprises officers from the Ministry of Electronics and Information Technology, Ministry of External Affairs, Department of Financial Services, Ministry of Law and Justice, Ministry of Consumer Affairs, the RBI, the Central Bureau of Investigation, the National Investigation Agency, Delhi police and the Indian Cyber Crime Coordination Centre. (With inputs from PTI and LiveLaw.)