00:00In fact, some more news coming in. The Supreme Court will be examining the proposed RBI Know Your Customer Amendment
00:07Directions 2026, which are to be notified by November 30th, 2026 and operationalized by December 31st, 2026.
00:16The court also directed the RBI to submit on the next date of hearing a list of all authorized financial
00:24institutions, observing that the banks need not be implemented individually and that the directions would be notified for implementation by
00:32all of them.
00:33So, the Supreme Court will be examining the proposed RBI Know Your Customer Amendment Directions 2026.
00:40My colleague Anisha continues to stay with us to get us more details on this. Anisha, over to you.
00:45Well, Anjali, as we were just discussing, the Supreme Court has expressed serious frustration on how the people are still
00:53falling for scams and on that, because the court had been asking the RBI, the banks, the financial institutions to
00:59tighten the regulations.
01:01Now, the Attorney General has said specifically that RBI's draft directions, the Know Your Laws, I beg your pardon, the
01:10Know Your Customer regulations are going to be notified by November 30th and they will be operationalized by December,
01:17which means that all these safeguards will be put in place if you have an unusual transaction, if somebody has
01:23accessed your account from an unknown, from a different IP address or a different phone or a different device, those
01:30will be flagged.
01:31Now, the Supreme Court, remember, had called for detailed SOPs and the circulation of those SOPs across banks and financial
01:40institutions.
01:41So, that is where the Attorney General has said that will be done.
01:44Additionally, mule accounts, which are often used to where people are told, well, you send your money to XYZ account
01:51and then when you send that money, the money simply disappears.
01:54Those mule accounts will be tracked, identification of mule accounts, how that has to be done, all of those regulations
02:01through the Know Your Customers regulations will also be done.
02:05So, there will be stricter monitoring of accounts which get a lot of money on multiple transactions.
02:12There are also operational changes that are going to come and that is what the Attorney General has said.
02:16There will be some operational changes in the existing banking system, intimating the customer, flagging a transaction to the customer
02:24and to the law enforcement agencies,
02:26routing information through certain channels, issuing reminders to the customers, to the law enforcement agencies because the court has said,
02:35and I am quoting the Chief Justice here, unless there is a penal direction to these banks, they will never
02:41mend their ways
02:42because one of the points that has been raised in this PIL over the last few months is that a
02:46lot of times people involved in the banking institutions,
02:50employees, etc. may also be involved.
02:53So, the liability of the bank, the liability of the bank officers, all of that is also going to be
02:58part of the new regulations that the RBI is bringing,
03:03especially when it comes to high value transactions if you haven't done the due diligence.
03:07Because the court is saying the bank should also flag the transaction, so if the bank hasn't flagged it, if
03:13some money has gone,
03:14then there has to be some liability of the bank also because that already exists in our current laws,
03:20that if you get hacked and money goes away from your account, the bank is liable to compensate you.
03:26So, we are now looking at sort of expansion of those rules to ensure that the banks also flag any
03:33seemingly fraudulent transactions.
03:35Now, there has been consultation, there is a lot that is happening in this, but the court, of course,
03:41and if you can give me 10 more seconds, I just want one more sentence to quote.
03:45The court has said in very simple terms that fraud running in 2000s of crores has taken place through digital
03:54arrest scams
03:54and we are still unable to take strong measures and why can't banks be mandated to classify accounts.
04:01That is a big question that is coming in from the Supreme Court today about the digital arrest scams,
04:06where the government, where the financial institutions and the RBI are being asked to regulate banking transactions
04:14and keep a closer watch on where money is moving.
04:17All right, Anisha, thank you so much for those details.
04:20So, in continuation to what the Supreme Court said on digital arrest scams,
04:24now, it will also be examining the proposed Know Your Customer RBI Amendment Act,
04:30which is related to the bank transactions that take place because the court is now serious about these scams
04:38which have now become very common in which people are losing huge money.
04:54For more information, visit our website at www.cdc.ca.gov.
04:57For more information on digital arrest, visit www.cdc.ca.gov.
04:59For more information, visit www.cdc.ca.gov.
