India's Supreme Court tells RBI to make banks fully compensate digital arrest victims

India's Supreme Court ruled that RBI's new rules must require banks to fully compensate victims of digital arrest and cyber fraud when a bank's failure to exercise due diligence enabled the scam. The RBI must notify its KYC Amendment Directions by November 30 and bring them into force by December 31, 2026.

• Court demands zero debit in victim's account when the bank is at fault
• Banks must hold unusual transactions and alert the nearest police station
• RBI to notify KYC amendments by November 30, enforce by December 31
• Net loss from digital arrest scams this year is about Rs 800 crore