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Delhi High Court Requests RBI's Input on Banks' Readiness to Combat Cyber Frauds

Delhi High Court Directs RBI to Clarify Guidelines on Fraudulent Transactions

In a recent development, the Delhi High Court has instructed the Reserve Bank of India (RBI) to provide a clear affidavit regarding guidelines given to commercial banks for responding to information requests from police cyber cells in cases of fraudulent transactions.

Emphasis on Diligence in Responding to Queries

Justice Prathiba M Singh's bench underscored the importance of a diligent approach in dealing with fraudulent transactions. Banks are urged to furnish details about their procedures for responding to inquiries raised by investigative agencies.

Court Seeks Clarification from RBI

The court directed the RBI to submit an affidavit clarifying whether guidelines have been issued to banks regarding police queries and to ensure compliance with orders from law enforcement or courts.

Addressing Instances of Customer Victimization

The court addressed a batch of petitions related to innocent customers falling victim to fraudulent activities, emphasizing that banks should respond diligently to information requests from police cybercrime cells.

Court's Directive for Affidavit and Compliance

“It is made clear that whenever any information is requested by the cybercrime cells of police authorities, banks ought to respond to the same in a diligent manner,” the court stated. It also noted the need for an affidavit from the RBI regarding guidelines for police queries.

Revelations from Delhi Police Counsel

The court's involvement follows revelations from the counsel representing the Delhi Police, highlighting the recurring issue of banks not promptly addressing inquiries from the agency about adherence to orders issued by law enforcement or judicial authorities.

Challenges in Prosecution Across States

The legal representative highlighted challenges in prosecuting cases where the primary accused is located in diverse states, including West Bengal, Bihar, and Maharashtra. The geographical dispersion poses challenges for the Delhi Police's Cyber Crime Cell.

Court's Directive for Collaboration

Recognizing the imperative for collaboration among cybercrime cells in different states, Justice Singh directed the Centre to organize a meeting of these units to enhance coordination in addressing cases related to fraudulent transactions.

Mandate for Coordination Meeting

The court mandated that a crucial meeting be called by the concerned Joint Secretary, MHA, for all cybercrime cells in various states to coordinate on dealing with fraudulent transaction cases. The meeting is ordered to take place by December 20, 2023, at 3:00 pm.

Future Hearing Scheduled

The hearing on this matter is set to resume on February 1, 2024.

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