Neutral impactEconomy
RBI proposes 60-day limit on bank account holds in cyber fraud cases: What customers need to know
Mint 1 hr ago·14 Sept 2026, 9:50 am
The Reserve Bank of India (RBI) has introduced a proposal to set a strict 60-day outer limit for banks to freeze accounts or block transactions suspected of being linked to cyber fraud. This move aims to address the prolonged financial uncertainty faced by customers during investigations. Under the new framework, customers would be given a 20-day window to provide an explanation for any flagged transactions, while banks are required to follow fixed timelines for reviewing these claims and referring the matter to law enforcement authorities.
This regulatory change is significant for investors as it seeks to balance the need for security with customer convenience. By limiting the duration of account freezes, the central bank aims to reduce the economic impact on individuals and businesses. For investors, this could lead to smoother liquidity management and fewer disruptions in financial operations. The proposal is currently open for public consultation, and its final implementation will depend on feedback from stakeholders.
Excerpt from Mint
RBI has proposed a 60-day outer limit for temporary debit holds on bank accounts or transactions suspected of being linked to cyber fraud. Customers would get 20 days to explain suspicious transactions, while banks would have fixed timelines for review and police referrals. The Reserve Bank of India (RBI) has proposed…Read the original at Mint
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- Category: Economy.
- Assessed as a significant, market-relevant update.
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