RBI draft: banks to follow an SOP for temporary debit holds on accounts linked to mule activity and cyber fraud
The draft KYC Amendment Directions, 2026 follow a Supreme Court order of 4 August 2026. Comments were invited up to 2 October 2026.
Key facts
- In force
- Draft — not in force
- Who it affects
- Banks; current-account holders and businesses receiving online payments
- What it is
- Comments invited
- Section
- FEMA & RBI
- Published
- 11 September 2026
In 30 seconds
- Draft Reserve Bank of India (Know Your Customer) Amendment Directions, 2026 issued on 11 September 2026.
- The Supreme Court, by order dated 4 August 2026, directed RBI to adopt and circulate an SOP on temporary debit holds.
- Applies to all Commercial Banks (including SFBs, Payments Banks, RRBs, LABs) and Urban Co-operative Banks.
- Comments could be sent up to 2 October 2026 through Connect 2 Regulate or by e-mail.
हिंदी में सार
सुप्रीम कोर्ट के 4 अगस्त 2026 के आदेश के बाद RBI ने KYC Amendment Directions, 2026 का मसौदा जारी किया है — mule खातों और साइबर ठगी से जुड़ी रकम पर बैंक अस्थायी debit hold कैसे लगाएँगे, इसकी SOP। सुझाव 2 अक्टूबर 2026 तक माँगे गए थे।
Why the draft has come
RBI’s KYC Directions, 2025 already contain instructions on “Operations of Bank Accounts and Money Mules”. The Supreme Court, in its order dated 4 August 2026, directed the Reserve Bank to adopt and circulate a Standard Operating Procedure prescribing the action banks must take for placing temporary debit holds on amounts or accounts linked to money-mule activity and cyber-enabled fraud.
What the draft proposes
The draft Amendment Directions propose to amend those instructions and advise banks on the action to be taken for placing such temporary debit holds as per the SOP. A consolidated draft is issued for all commercial banks and urban co-operative banks; the final Directions will be issued separately for each type of regulated entity after the feedback is examined.
What account holders should know
- This is a draft. Nothing in it is in force until the final Directions are issued.
- The press release does not set out the SOP itself; the detail is in the draft Directions on the RBI website.
- The comment window ran up to 2 October 2026.
Published 11 September 2026. Updated 13 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.