Supreme Court Directs RBI to Mandate Bank Indemnity for Digital Arrest Fraud
· India · Times of India, Hindustan Times, Live Law
The Supreme Court has directed the Reserve Bank of India to ensure its upcoming standard operating procedure, due by November 30, mandates that banks indemnify victims of 'digital arrest' fraud. A bench led by Chief Justice Surya Kant expressed concern over the potential complicity of bank employees in sharing account details with cybercriminals. The court further instructed the RBI to submit a list of financial institutions to the bench. Additionally, the court suggested that telecom service providers should share liability for these frauds and requested that WhatsApp implement a 'kill switch' or automatic termination for unusually long calls.
Why it matters
This directive aims to protect Indian bank customers from financial loss in sophisticated cyber scams and forces financial and telecom institutions to take greater responsibility for security lapses.
Read the original report — Times of India
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