For years, a single cyber-fraud complaint often resulted in a complete bank account freeze.
Salaries got stuck. Business operations suffered. Genuine users paid the price.
That approach is now changing.
The Ministry of Home Affairs (MHA) has issued a new Standard Operating Procedure (SOP) on Cyber Financial Frauds, bringing much-needed clarity and balance.
What changes under the new SOP
- Only the disputed amount may be put on hold
- Entire bank accounts should not be frozen by default
- If no police or court order exists, the hold must be removed within 90 days
- A defined grievance redressal mechanism with timelines is mandatory
- Greater emphasis on proportionality, livelihood, and business continuity
Why this matters
- Prevents arbitrary account freezes
- Protects salaries and working capital
- Creates uniform rules across banks and states
- Balances fraud prevention with citizen and business rights
The message is clear:
Cyber-fraud control cannot come at the cost of freezing innocent money.