The Supreme Court has raised the question of compensation for digital-fraud victims where financial institutions fail to exercise due diligence. Akashvani's 29 October report describes observations by a bench led by Chief Justice Surya Kant, with Justices Joymalya Bagchi and V. Mohana, during consideration of the regulatory response.
The bench said victims of offences such as digital-arrest scams should receive at least the amount lost when an institution's due-diligence failure is established. This is a conditional proposition, not an announcement that every person reporting fraud is automatically entitled to reimbursement.
The court will examine RBI's proposed KYC Amendment Directions for 2026. The report gives 30 November as the expected notification date and 31 December for operationalisation. Those are prospective milestones; the report does not establish that the proposed rules are already in force.
RBI was also directed to provide a list of authorised financial institutions for the next hearing. The distinction between the court's observations, a future regulatory framework and an enforceable entitlement is important for victims evaluating what remedies are presently available.
