17 publishers · first seen Thu, 29 Oct 2026 00:01 UTC · updated Fri, 30 Oct 2026 04:55 UTC
The Supreme Court, in a bench led by Chief Justice Surya Kant with Justices Joymalya Bagchi and V Mohana, ordered that banks must compensate victims of digital‑arrest scams and other cyber frauds by at least the amount lost when investigations show a failure of due‑diligence by the financial institution. The court noted that cybercrime has fallen by 50 per cent but losses have reached Rs 800 crore this year, and it directed the Reserve Bank of India to finalize the proposed Know Your Customer (KYC) Amendment Directions, 2026, which are to be notified by November 30 and operationalised by December 31.
The bench also urged banks to temporarily suspend transactions that deviate significantly from a customer’s usual pattern, automatically report suspicious activity and alert nearby police stations, using technologies such as artificial intelligence to prevent fraud before money is transferred.
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