New Delhi, Sept. 14 -- The Reserve Bank of India (RBI) has proposed a time-bound framework for banks to freeze transactions or accounts suspected to be linked to cyber-enabled financial fraud, with temporary debit holds generally capped at 60 days.

The proposed rules are aimed at addressing a common problem for bank customers caught in cyber-fraud investigations. While banks need to act quickly when money from fraudulent transactions enters an account, prolonged freezes can leave genuine customers unable to access their funds.

Under the draft RBI (Know Your Customer) Amendment Directions, 2026, banks would have to follow defined timelines for placing a temporary debit hold, informing customers, examining their explanations and referring...