Supreme Court asks RBI to consider compensating victims who lose savings in 'digital arrest' scams

The Supreme Court has directed the Reserve Bank of India to look into mandating compensation for individuals who lose their savings to 'digital arrest' fraud. Such scams typically involve fraudsters impersonating law enforcement or officials to coerce victims into transferring money. The court's direction places responsibility on the central bank to examine how financial institutions should address losses arising from these cyber-fraud cases. The development reflects growing judicial concern over the rising incidence of digital fraud targeting ordinary citizens. Further steps will depend on the RBI's response to the apex court's request.