Politics
Supreme Court cites Rs 800 crore digital fraud losses
The Hindu BusinessLine·
The Supreme Court on Thursday said banks are to compensate digital fraud victims when losses follow failed due diligence. A bench led by Chief Justice Surya Kant said payouts are to be at least the amount lost. Cyber crimes fell 50 percent yet victims lost Rs 800 crore this year. Proposed RBI KYC rules are due by November 30.
Prism
What It Means For You
- If an investigation finds bank due-diligence failure, compensation would cover at least the customer’s loss.
- The court wants banks to pause transfers that break an account’s usual pattern.
- It also called for automatic alerts to the nearest police station on suspicious high-value moves.
What's Happening
- The remarks came in suo motu proceedings on digital arrest scams using forged documents.
- Justices Joymalya Bagchi and V Mohana sat with the Chief Justice.
- Attorney General R Venkataramani said work is under way to improve detection of suspicious transactions.
What the Bench Wants from RBI
- The court said the RBI framework must include enforceable compensation, prevention and accountability rules.
- The Chief Justice asked what happens if a bank fails to comply with the proposed guidelines.
- Amicus NS Nappinai cited a recent case in which a woman lost Rs 2.5 crore.
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