✎ SC mandates RBI to create SOP for mule accounts to curb cyber fraud and ensure victim relief.

Relevance for Banking, SSC & RBI Grade B exams: Polity

The Supreme Court has taken a stringent stance against cyber fraud, directing the Reserve Bank of India (RBI) to formulate a Standard Operating Procedure (SOP) for handling ‘mule accounts’—bank accounts often misused for fraudulent transactions. The apex court emphasized the need for a structured protocol to curb digital financial fraud, ensuring accountability among banks, law enforcement agencies, and state authorities. Additionally, the court ordered the RBI to share the SOP with all High Courts and mandated states to launch awareness campaigns to educate the public about fraud redressal and fund recovery mechanisms. This directive aligns with the court’s suo motu proceedings in the *In Re: Victims of Digital Arrest Related to Forged Documents* case, highlighting the judiciary’s proactive role in addressing evolving cybercrime challenges.

For aspirants preparing for Bank PO, IBPS, SBI, RBI Grade B, and SSC exams, this development holds significant relevance. It underscores the importance of regulatory frameworks in tackling financial crimes, a key topic in banking and economic governance sections. Questions on RBI’s role in fraud prevention, cybersecurity measures, or the judiciary’s intervention in financial crimes could feature in exams, testing candidates’ awareness of current policies and legal provisions. The emphasis on inter-departmental coordination (e.g., IDC) and accountability mechanisms also reflects the broader governance themes crucial for SSC’s general awareness and RBI Grade B’s economic and social issues segments.

Source: amarujala.com

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