New Delhi, Oct. 29 -- The Supreme Court on Thursday pulled up the Reserve Bank of India (RBI) over cyberfrauds, saying banks must compensate victims for losses when their employees are found to be involved.

A bench headed by Chief Justice of India Surya Kant noted that digital arrest scams persisted despite public awareness campaigns, media coverage and earlier judicial directions. The court was hearing a suo motu case on the issue.

The court questioned why the banks should not be held accountable for the losses suffered by their customers, when the financial institution can waive loans worth crores as a one-time settlement. "Banks can waive thousands of crores in loans by entering into so-called one-time settlements for Rs.5 crore or R...