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Updated 2h agoBusiness & Markets

RBI Proposes New Rules to Prevent Automatic Total Bank Account Freezing

Headline by Prism · from 1 report

The Reserve Bank of India has issued a draft framework proposing to restrict only specific suspicious transactions rather than freezing entire bank accounts during cyber fraud investigations.

1 outlet · 1 report · HindiOne source so far

The record

Written from the 1 report below. Nothing here is unsourced.

  • The Reserve Bank of India has introduced a draft policy aimed at minimizing inconvenience for bank customers during cyber fraud investigations.
  • Instead of automatically freezing an entire account due to one suspicious transaction, banks may instead place a temporary debit hold only on the disputed amount.
  • Customers will have 20 days to provide evidence regarding the transaction's legitimacy, with a 60-day maximum limit on such holds unless further legal action is required.
  • This move follows a Supreme Court directive to standardize how banks handle money mule accounts and fraud monitoring.

What to watch next

  • Review of stakeholder feedback after the October 2, 2026 deadline.
  • Final issuance of the Standard Operating Procedure by the Reserve Bank of India.
  • Implementation of the proposed rules scheduled for April 1, 2027.

Coverage1

1 report
Indian-language1

All filed from India

Named India · Allahabad High Court · Reserve Bank of India · Supreme Court

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RBI Proposes New Rules to Prevent Automatic Total Bank Account Freezing | Prism