RBI issues draft SOP for temporary debit holds on money-mule, cyber fraud accounts
The Reserve Bank of India has released a draft Standard Operating Procedure (SOP) for banks to implement temporary debit holds on accounts linked to money mules and cyber fraud. This follows a Supreme Court directive from August 4, 2026. The proposed framework outlines specific timelines for banks to identify suspicious transactions, notify customers, examine their explanations, and subsequently remove or extend debit holds. The objective is to standardize the process and enhance the effectiveness of combating financial fraud.
What this means
This draft SOP will streamline banks' response to cyber fraud, imposing clear procedural requirements and timelines. It necessitates upgrades in fraud detection systems and customer communication protocols, potentially increasing operational burden but improving consumer protection and reducing financial crime risks. Compliance will be critical to avoid regulatory penalties.
Most affected: Retail banking operations, fraud & compliance
Key takeaway: Review internal systems and procedures to align with the proposed SOP, focusing on swift transaction identification, customer notification, and efficient resolution to minimize fraud impact.
Get stories like this in your inbox every morning
Free daily brief — rates, RBI updates and the banking stories that matter, in 3 minutes.
More in this briefing
- RBI to drain Rs 1 lakh crore as VRRR auctions fail to absorb liquidity
- Bank deposits grow 17.8% in August, fastest in decade as FCNR-B inflows mask local mobilisation woes
- SBI’s ERD expects 25 bps repo rate hike each in Oct and Dec due to hardening crude oil prices, CPI inflation
- SBI developing solution to use UPI data for checking creditworthiness of small biz
- Reserve Bank of India (Priority Sector Lending – Targets and Classification) Third Amendment Directions, 2026