The Reserve Bank of India has issued draft amendments to its Know Your Customer Directions proposing how banks should place temporary debit holds on amounts or accounts linked to money mule activity and cyber enabled financial fraud. The amendments would incorporate a standard operating procedure into existing instructions on bank account operations and money mules. The proposal follows an August 4, 2026, Supreme Court order directing the Reserve Bank to adopt and circulate such a procedure. It would apply to all commercial banks, including small finance banks, payments banks, regional rural banks and local area banks, as well as urban cooperative banks. Final directions will be issued separately for the relevant categories of regulated entities.
2026-09-11Reserve Bank of India
Reserve Bank of India launches consultation on temporary debit holds for funds and accounts linked to money mules and cyber fraud
The Reserve Bank of India is consulting on draft requirements for banks to place temporary debit holds on funds or accounts linked to money mules and cyber enabled financial fraud. The proposal, prompted by a Supreme Court order, would cover all commercial banks and urban cooperative banks.