The Supreme Court of India on Tuesday, 4 August 2026, issued a sweeping set of nationwide directions to fortify the country's institutional defence against digital arrest scams, ordering the Reserve Bank of India (RBI) to frame a Standard Operating Procedure (SOP) on mule accounts within four weeks and directing all states and Union Territories (UTs) to operationalise cyber fraud grievance redressal and money restoration mechanisms without delay.

A Bench comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and V. Mohana passed the directions after reviewing the fourth status report submitted by the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs, detailing compliance by ministries, regulators, investigating agencies, telecom service providers, and digital intermediaries with the court's earlier orders.

Key Directions Issued by the Court

The apex court directed the RBI to prepare and circulate the mule-account SOP within four weeks, with a copy to be furnished to the Registrar General of every High Court. States and UTs have been asked to notify and operationalise their State Cyber Crime Coordination Centres within the same deadline and to adopt the e-Zero FIR mechanism in consultation with I4C.

The Centre's Inter-Departmental Committee has been tasked with examining a shared liability and victim compensation framework for those defrauded through digital arrest scams. The court also asked the Registrar General of every High Court to bring the grievance redressal mechanism to the notice of courts and adjudicating authorities handling bank account freezing cases in cyber fraud matters.

'The Reserve Bank of India shall, within four weeks, prepare and circulate a Standard Operating Procedure (SOP) for dealing with mule accounts/accounts linked to money laundering activity and cyber-enabled fraud,' the CJI-led Bench ordered.

Decline in Complaints — But Vigilance Urged

Recording notable progress, the Bench noted that complaints related to digital arrest scams on the National Cyber Crime Reporting Portal had fallen sharply — from 1,23,672 in 2024 to 58,249 in 2025, and further to 16,377 by 30 June 2026. Reported defrauded amounts have also declined correspondingly.

'While this trend is certainly encouraging, it bears saying that continued monitoring remains indispensable,' the Bench observed, adding that 'the mechanisms already put in place require wider adoption, faster implementation, and continued follow-up.'

Role of Legal Services Authorities and Courts

The Supreme Court recommended that State Legal Services Authorities immediately launch public awareness initiatives covering digital arrest scams, cybercrime prevention, and available recovery mechanisms. It also directed authorities to ensure expeditious disposal of matters involving the freezing of bank accounts arising from cyber-enabled financial frauds, while clarifying that the grievance redressal route would not bar constitutional or statutory remedies.

Background and Earlier Orders

The proceedings stem from the court's suo motu intervention after a senior citizen couple informed the apex court that they had been defrauded of their life savings through a digital arrest scam. In orders dated 1 December 2025, the court had entrusted investigation of such scams to the Central Bureau of Investigation (CBI), directed telecom providers and intermediaries to cooperate, and called for measures to curb misuse of mule bank accounts and SIM cards.

On 9 February 2026, the Bench directed the Union Ministry of Home Affairs to implement a uniform SOP for grievance redressal and restoration of defrauded money, asked the RBI to finalise its SOP on temporary debit holds for suspicious accounts, and called on authorities to evolve a victim compensation framework. The matter has now been posted for its next hearing on 16 September 2026.