New Delhi: The Supreme Court Tuesday recorded a decline in complaints relating to “digital arrest” scams, from 1,23,672 in 2024 to 58,249 in 2025 and 16,377 for the period ending 30 June, 2026, while directing the Reserve Bank of India (RBI) and other agencies to improve mechanisms to prevent such frauds and restore defrauded money.
A bench of Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana passed the directions in suo motu proceedings on digital arrest scams, after hearing Attorney General R. Venkataramani, Solicitor General Tushar Mehta and amicus curiae senior advocate N.S. Nappinai.
The bench said that “while the trend was encouraging, continued monitoring remained indispensable, and that the mechanisms in place required wider adoption, faster disposal and continued follow-up”.
In a digital arrest scam, callers pose as police, customs or other officials, tell the target they are under investigation, and keep them on a video or audio call while extorting money. The court took up the issue on its own motion and had passed earlier orders on 10 December, 2025 and 9 February, 2026, directing a coordinated response from the ministries, regulators and agencies concerned.
Among the directions, the bench asked the RBI to adopt and circulate, within four weeks, a standard operating procedure (SOP) prescribing the action banks must take to place temporary debit holds on amounts or accounts linked to mule activity and cyber-enabled fraud. A copy of the final SOP is to be furnished to the Indian Cyber Crime Coordination Centre (I4C) and Registrar General of all High Courts.
According to the fourth status report filed by I4C, under the Ministry of Home Affairs, a data-sharing memorandum of understanding (MoU) between the Reserve Bank Innovation Hub and I4C was executed on 11 May, 2026. The grievance redressal portal now covers 1,23,590 branches of 69 banks. The Money Restoration Mechanism Portal has 57 participating banks across all 36 States and Union Territories, with restoration completed in 36,290 cases involving ₹18.05 crore.
The report reflected deliberations at the fourth and fifth meetings of the Inter-Departmental Committee, held on 11 May and 14 July, 2026.
The court noted that the e-Zero FIR mechanism is operational in 19 states, while 14 states have notified their State Cyber Crime Coordination Centres. The Telecommunications (Radio Equipment Possession Authorisation) Rules, 2025 have been notified, and the Telecommunications (User Identification) Rules, 2025 are at the final stage of notification.
On the Central Bureau of Investigation’s role, the report stated that the agency has registered 10 digital arrest cases and several connected cases.
In one investigation, it identified 238 victims, 67 first-layer bank accounts, transactions of around Rs 80 crore, and conducted searches at 93 locations across 16 states. The Inter-Departmental Committee has asked CBI to examine lowering the existing Rs 10 crore threshold and to consider taking up cases involving the same organised network where cumulative fraud exceeds the threshold.
The bench directed all states, Union Territories and law enforcement agencies to operationalise the Grievance Redressal Module and the Money Restoration Module under the Home Ministry’s SOP of 2 January, 2026, and to promote public awareness of the two modules. Registrar Generals of High Courts were directed to bring the grievance mechanism to the notice of courts and authorities dealing with the freezing of bank accounts in cyber fraud cases.
“…an aggrieved person may be encouraged to use the mechanism first, but that this would not bar constitutional, statutory or other legal remedies,” the court said.
States that have not notified their Cyber Crime Coordination Centres were directed to do so within four weeks and to adopt the e-Zero FIR mechanism in consultation with I4C. The Inter-Departmental Committee was directed to examine a proposal for a shared liability and victim compensation framework, and to consult banks and intermediaries on technological measures.
The court also directed the Ministry of Electronics and Information Technology, the Department of Telecommunications and I4C to examine, with intermediaries, a proposal on time-based restrictions on telecom services for audio and video calls, and to place a note on technical feasibility, use cases, safeguards and alternatives before it with the next status report. A consolidated status report is to be filed before the next hearing. The matter has been listed for 16 September this year.
(Edited by Amrtansh Arora)