New Delhi, Nov. 10: The Supreme Court has directed WhatsApp and other social media intermediaries to submit proposed measures to prevent digital arrest scams and related cybercrimes.
The platforms must also submit their proposals to the Indian Cyber Crime Coordination Centre (I4C). A bench headed by Chief Justice of India Justice Surya Kant issued the directions.
The bench also comprised Justices Joymalya Bagchi and V. Mohana. It issued the directions in a suo motu case titled In Re: Victims of Digital Arrest Related to Forged Documents.
Banks May Have to Compensate Cyber Fraud Victims
The Supreme Court reiterated that banks must compensate customers for losses caused by cyber fraud when investigations establish a failure of due diligence.
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The Court said the proposed Reserve Bank of India (RBI) regulations must include provisions requiring financial institutions to indemnify victims. The compensation should not be less than the amount lost by customers in such cases.
The bench also questioned why banks failed to flag unusually large transactions. Such transfers may differ significantly from a customer’s normal transaction patterns.
It suggested safeguards, including temporarily suspending suspicious transactions. Banks should also alert the nearest police station and physically verify reported transactions.
Supreme Court Seeks Reports from States
The bench directed law enforcement agencies across all States and Union Territories to submit reports on digital arrest cases.
The reports must include details of registered FIRs and the progress of investigations. Authorities must also suggest measures to prevent, detect and prosecute cybercrimes.
The Court directed all State and Union Territory Directors General of Police to ensure compliance.
RBI KYC Guidelines Under Supreme Court Review
The Supreme Court also directed the RBI to submit a list of all authorised financial institutions before the next hearing.
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The bench said it would examine the RBI’s proposed Know Your Customer (KYC) Amendment Directions, 2026 before allowing the regulatory process to proceed.
The proposed directions are expected to be notified by November 30 and operationalised by December 31.
The Court also noted that cybercrime cases had declined by 50 per cent. However, victims had reportedly lost ₹800 crore so far this year.
The matter is scheduled for further hearing on November 23, 2026.
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