RBI proposes SOP for temporary debit holds on money-mule accounts

The RBI issued draft amendments to its KYC Directions, 2026, implementing a Supreme Court-mandated SOP for banks to place temporary debit holds on accounts linked to money-mule activity and cyber-enabled fraud. The move formalizes a standardized procedure, shifting from ad-hoc bank practices to a regulated framework. This affects banking operations and fraud management, with implications for financial-system integrity and consumer protection.