MHA’s New SOP on Cyber Financial Frauds | 17 Jan 2026

Source: IE

Why in News?

In a major step to strengthen India’s cybercrime response, the Ministry of Home Affairs has approved a new Standard Operating Procedure (SOP) for handling cyber financial frauds under the National Cybercrime Reporting Portal (NCRP).  

  • The move aims to ensure faster refund of defrauded money, especially in small-value cases, and improve victim-centric grievance redressal. 

What is the New SOP on Cyber Financial Frauds? 

  • About: The new SOP for cyber financial fraud cases under the Cyber Financial Crime Reporting and Management System (CFCFRMS) is implemented through the National Cybercrime Reporting Portal and coordinated by the Indian Cyber Crime Coordination Centre.
    • It provides a uniform, pan-India framework for handling online financial fraud. 
  • Core Objective: SOP aims to ensure quick freezing of fraudulent transactions, faster restoration of money to victims, and accountability of financial intermediaries, while shifting cybercrime response towards a victim-centric and time-bound model. 
  • Reliefs Under SOP: For frauds below Rs 50,000, refunds can be processed without a court order.  
    • If no court or restoration order exists, banks must lift the freeze within 90 days, preventing indefinite blocking of funds. 
  • Need: India lost over Rs 52,000 crore to cyber frauds in six years, victims often faced delays, prolonged account freezes, and lack of clarity.  
    • The SOP addresses these systemic gaps and strengthens trust in the digital payments ecosystem. 
  • Standardise Processes Across Institutions: The SOP lays down a common procedure for banks, NBFCs, payment aggregators, e-commerce platforms, stock-trading apps, and mutual fund houses, ensuring consistency, faster coordination, and reduced ambiguity in handling cyber fraud complaints. 
  • Digital Systems: Following two new modules will be developed under NCRP, which will improve coordination between financial institutions, law enforcement agencies, and victims. 
    • Grievance Redressal Module for tracking and resolving complaints. 
    • Money Restoration Module for faster refund of defrauded amounts. 

National Cybercrime Reporting Portal (NCRP) 

  • The NCRP under the Indian Cyber Crime Coordination Centre, was dedicated to the nation in 2020. Unlike the earlier CCPWC portal, which covered only child sexual abuse and rape-related content, the revamped NCRP enables reporting of all types of cybercrime across India through a single platform. 
    • Key features include nationwide cybercrime reporting, special focus on online Child Sexual Abuse Material (CSAM), case-status tracking, multi-level monitoring dashboards, and support through Cyber Volunteers and the Vani–CyberDost chatbot.  
  • The NCRP integrates the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS), which connects 85+ banks and payment intermediaries and enables reporting of financial frauds via the 1930 national helpline, allowing swift coordination between law enforcement agencies, banks, RBI, NPCI, and other stakeholders to prevent fund siphoning and restore losses.

Note: In another development, the Union government has set up a high-level inter-departmental committee under the Ministry of Home Affairs to tackle the growing menace of “digital arrest” scams, which have already led to losses of around Rs 3,000 crore based on reported complaints alone and have disproportionately affected the elderly and vulnerable. 

  • The committee brings together key agencies like the Reserve Bank of India and the Central Bureau of Investigation, and has engaged platforms such as Google and WhatsApp to plug real-time enforcement gaps, stop police and court impersonation, and tighten safeguards against large-scale fraud. 
Read more:  SC Directions on 'Digital-Arrest' Scams 

Frequently Asked Questions (FAQs) 

1. What is the new SOP on cyber financial frauds? 
It is a uniform, pan-India procedure approved by the MHA to handle cyber financial fraud cases through NCRP and CFCFRMS.

2. What major relief does the SOP provide to victims? 
For frauds below Rs 50,000, refunds can be processed without a court order, and banks must lift fund freezes within 90 days if no order exists.

3. Which institutions are covered under the SOP? 
Banks, NBFCs, payment aggregators, e-commerce platforms, stock-trading apps, and mutual fund houses.

4. Why is NCRP important in India’s cybercrime framework? 
NCRP enables nationwide reporting of all cybercrimes, integrates CFCFRMS, and connects 85+ banks and intermediaries via the 1930 helpline for swift action.

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q1. In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (2020)  

  1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer  
  2. Cost of a new computer if some miscreant wilfully damages it, if proved so  
  3. Cost of hiring a specialised consultant to minimise the loss in case of cyber extortion  
  4. Cost of defence in the Court of Law if any third party files a suit  

Select the correct answer using the code given below:  

(a) 1, 2 and 4 only  
(b) 1, 3 and 4 only  
(c) 2 and 3 only  
(d) 1, 2, 3 and 4  

Ans: (b)

Q.2 In India, it is legally mandatory for which of the following to report on cyber security incidents? (2017)  

  1. Service providers  
  2. Data centres  
  3. Body corporate  

Select the correct answer using the code given below: 

(a) 1 only  
(b) 1 and 2 only  
(c) 3 only  
(d) 1, 2 and 3  

Ans: (d)

Mains

Q. What are the different elements of cyber security ? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy. (2022)