The Ministry of Home Affairs (MHA) has introduced a new rule to provide faster relief to victims of cyber fraud. Under the new regulation, people who lose less than Rs 50,000 in online fraud cases will be able to get their money back quickly without the need for a court order.

The move is aimed at reducing delays and easing the burden on victims of small-value cyber frauds.

Refund without court order for fraud below Rs 50,000

According to a report, the MHA has approved a Standard Operating Procedure (SOP) that allows banks to return money directly in cyber fraud cases involving amounts below Rs 50,000.

Earlier, victims had to wait for legal approvals, which often delayed refunds. The new SOP will speed up the process and ensure quicker financial relief.

What is new SOP for Cyber Fraud?

The SOP is part of the Cyber Financial Crime Reporting and Management System (CFCFRMS) under the National Cybercrime Reporting Portal (NCRP).

It introduces a uniform mechanism for handling cyber financial crimes across the country, ensuring that all institutions follow the same process once a cybercrime complaint is registered.

Banks must unfreeze accounts within 90 days

The new rule also addresses complaints related to frozen bank accounts. If an account is frozen due to suspected cyber fraud and the account holder is found innocent after police investigation, banks must release the account within 90 days.

This will apply only if there is no court order or legal directive linked to the case.

SOP applies to Banks, Payment Apps, and Financial Platforms

The SOP will be mandatory for banks, payment companies, non-banking financial companies (NBFCs), e-commerce platforms, stock trading apps, mutual fund companies, and other financial institutions.

All these entities will be required to follow the same guidelines when responding to cyber fraud alerts.

Cyber Fraud cases continue to rise in India

Cyber fraud cases are increasing rapidly in India. Recently, an elderly NRI couple in Delhi was reportedly cheated of nearly Rs 15 crore.

Data from the Indian Cyber Crime Coordination Centre (I4C) shows that Indians have lost more than Rs 52,976 crore to online fraud and deception over the past six years.

The new SOP is expected to bring major relief to cyber fraud victims and individuals whose accounts were frozen unnecessarily.