Cyber fraud cases: MHA’s new SOP allows refund below Rs 50,000 without court order, Pg22

Key Highlights:

• The Ministry of Home Affairs (MHA) has approved a new Standard Operating Procedure (SOP) for the National Cybercrime Reporting Portal (NCRP).
• The SOP allows for swift refunds without a court order for fraud amounts below Rs 50,000.
• Banks must release holds on defrauded amounts below Rs 50,000 within 90 days if no court order exists.
• Over the past six years, Indians have lost more than Rs 52,976 crore to cyber fraud.
• The Cyber Financial Crime Reporting and Management System (CFCFRMS) saved over Rs 7,130 crore through more than 23.02 lakh complaints by October 31 last year.

Detailed Insights:

• The new SOP aims to establish a uniform process for financial intermediaries when a cybercrime complaint is lodged.
• It introduces a three-tier escalation structure for time-bound resolution of complaints related to frozen accounts.
• The CFCFRMS, launched in 2021, enables immediate reporting of financial fraud to prevent fund siphoning.
• The SOP includes a simplified system to restore defrauded funds and build public trust in digital payments.
• Two digital modules, a grievance redressal module and a money restoration module, will be developed under the NCRP to streamline coordination.
• Data from the NCRP shows increasing amounts lost to cyber fraud over the past six years, with Rs 19,812.96 crore lost in 2025 alone.

Key Concepts Involved:

• Cybercrime: Crime committed using a computer, network, or hardware device.
• SOP (Standard Operating Procedure): A set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations.
• Grievance Redressal Mechanism: A system for receiving, evaluating, and resolving complaints or grievances.