The Reserve Bank of India (RBI) has released a new draft plan to help banks fight cyber-crime. The RBI wants to create a Standard Operating Procedure (SOP) for placing temporary 'debit holds' (stopping money from going out) on accounts. This applies to 'money-mule' accounts, which are bank accounts used by criminals to move stolen money. This new rule will apply to all commercial and urban cooperative banks across India.

This move comes after an order from the Supreme Court in August 2026. The RBI wants these rules to start by April 1, 2027, though banks can start earlier if they are ready. The main goal is to stop fraudsters from withdrawing stolen cash quickly while giving innocent customers a fair chance to explain their transactions. However, these rules will not apply to special accounts like escrow, dividend, or share capital accounts.

According to the draft, the maximum time a bank can hold the money is 60 days, unless a Law Enforcement Agency (LEA) like the police says otherwise. As soon as a bank's system flags a suspicious transaction, the bank must put a hold on the money or the whole account immediately. The bank must tell the customer about this hold through SMS, email, or a letter by the end of the next day.

For bank officers, the timeline for investigation is very strict. Once the hold is placed, the customer has 20 days to explain why the transaction is genuine. After the customer gives their explanation, the bank has only 10 days to check it and make a final decision. If the customer does not reply at all, the bank must decide what to do within 30 days of the original hold date.

The RBI also mentioned the role of the police. If the bank contacts the Law Enforcement Agency (LEA) and does not get a specific order to keep the account frozen within 30 days, the bank must remove the hold and inform the customer. This ensures that accounts are not stuck in a 'frozen' state forever without a legal reason.

To make this work, banks must upgrade their technology. The RBI requires banks to use systems that can automatically spot fraud. Banks also need to connect their systems to the National Cybercrime Reporting Portal (CFCFRMS). This will help bank staff report and track fraud cases more efficiently across the country.

For bank aspirants and employees, this means a bigger focus on KYC (Know Your Customer) and transaction monitoring. The draft rules will be part of the KYC Directions, 2025. It will change how branch managers and back-office teams handle customer complaints regarding frozen accounts. There must also be a clear system for customers to file grievances if they feel their account was wrongly held.

Everyone in the banking sector should watch for the final version of these rules. While the draft sets the framework, the actual implementation will require training for staff to handle the tight 10-day and 30-day deadlines. This SOP will bring much-needed clarity to the daily struggle of managing fraud-hit accounts.