MUMBAI: Maharashtra Chief Minister Devendra Fadnavis announced a landmark directive urging banks to unfreeze accounts once victims submit a police certificate in cyber fraud cases. Presented in the state assembly, the motion followed calls by legislator Siddharth Shirole, who warned that cold storage of defrauded funds often exacerbates victims’ hardship without judicial oversight .
Fadnavis introduced the new Maharashtra Cyber Security Project, featuring an AI-backed command centre capable of freezing suspect transactions within 2.5 minutes of a cyber complaint. Since 2019, over ₹700 crore tied to fraud have been frozen under this system. Victims who file FIRs can now seek swift restitution once police certification is filed with a court or bank, marking a new victim‑centric model in cybercrime policy.
Artificial Intelligence and Inter-State Coordination Bolster Response
Key to this initiative is the deployment of artificial intelligence platforms enabling real-time analysis of banking and wallet transactions flagged via 1930–1945 cyber-helplines. Maharashtra plans to train over 5,000 police officers across five new cyber stations, including Pune, enhancing detection and response capabilities .
Devendra Fadnavis also pushed for amendments to national cybersecurity laws, including bilateral agreements to repatriate funds held abroad. Minister of State Yogesh Kadam highlighted recent VPN-linked frauds and championed improved traceability of foreign-origin fraud, which has so far hindered investigations in cross-border cybercrime .
Policy Impact and National Ripple Effects
Under Strain: Banks Told to Balance Freeze vs. Fairness
Fadnavis stressed that banks can no longer “turn a blind eye” to cyber fraud cases. He referenced an RBI circular cautioning lenders against arbitrary freezes, particularly when government benefit (DBT) accounts are impacted .
Toward a National Standard
Gujarat has introduced a “refund portal” and “Unfreeze” app that unblocks victim accounts tied to cybercrime instantly—Maharashtra now follows suit for a broader provincial rollout . Experts suggest this model may ignite a national standard, reducing legal friction through police certification, AI, and helpline fast-tracking.
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What Happens Next?
Banks in Maharashtra will receive formal guidelines from the RBI, state police, and cyber cell to operationalise the CM’s directive. Over the coming weeks, designated cyber stations and command centres will pilot test the system. Meanwhile, financial institutions are being urged to prepare internal protocols for rapid verification and equitable release of frozen funds once police documentation is submitted.
About the Author – Sahhil Taware is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.