Rajasthan Police have directed banks to return ₹5.67 crore to cyber-fraud victims after processing 8,016 applications through a new online money-restoration system.
The state’s cybercrime wing, R4C, is using the Money Restoration Module to help victims recover funds that were frozen in suspected bank accounts after fraud complaints.
The system is designed to reduce delays in cases where police have already traced the money and established that the frozen amount belongs to the complainant.
For many smaller claims, victims may no longer need to repeatedly approach courts before the money can be released.
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The Money Restoration Module operates through the National Cyber Crime Reporting Portal infrastructure created by the Indian Cyber Crime Coordination Centre.
A victim must first report the fraud through cyber helpline 1930 or the national cybercrime portal.
If banks are able to put the disputed amount on hold, the complainant can then submit a restoration request using the acknowledgement number generated from the cybercrime complaint.
The request is routed to the concerned police station.
An investigating officer examines the complaint, transaction records and the amount frozen in the suspected account.
Police may also seek an explanation from the account holder receiving the money.
If investigators conclude that the frozen funds belong to the cyber-fraud victim and are not required to remain held for the investigation, they can initiate the process for returning the money.
The bank then transfers the approved amount to the victim.
Smaller Claims Can Avoid Lengthy Court Process
One of the most significant changes concerns smaller amounts.
Under the process being used in Rajasthan, frozen money of up to ₹50,000 can be considered for interim restoration under Section 106(3) of the Bharatiya Nagarik Suraksha Sanhita without first obtaining a separate court order.
Where a victim’s total frozen money exceeds ₹50,000 but is spread across several accounts with no individual amount above ₹50,000, the simplified process can also apply.
If more than ₹50,000 is frozen in a single account, an FIR is generally required before restoration can proceed under the prescribed process.
This does not mean money is automatically released as soon as a complaint is filed.
Police must first verify the transactions and determine that the claimant is entitled to the amount.
The framework is intended to solve a recurring problem in cybercrime cases: police may successfully freeze stolen money, but victims can still spend months navigating legal procedures before getting it back.
Speed Is Critical in Cyber Fraud Recovery
Recovering cyber-fraud money depends heavily on how quickly a victim reports the transaction.
Criminal networks often move stolen funds through several mule accounts within minutes or hours.
Once money is transferred repeatedly, withdrawn as cash or converted into other assets, recovery becomes far more difficult.
The 1930 cyber helpline and the National Cyber Crime Reporting Portal allow police and banks to try to interrupt that process.
If a complaint reaches authorities quickly enough, financial institutions may place a hold on money that is still sitting in a beneficiary account.
The Money Restoration Module addresses the next stage.
Instead of leaving that frozen money indefinitely inside a suspect account, it provides a structured process through which police can verify the claim and initiate its return.
Rajasthan Police Superintendent Vikas Sangwan said the system has made restoration simpler and more time-bound.
Additional Director General of Police for Cyber Crime V.K. Singh said the platform is intended to provide quicker relief to victims.
Police Warn Victims Against Refund Agents
Rajasthan Police have also warned people about a secondary scam targeting those who have already lost money.
Fraudsters or unauthorised intermediaries may contact victims and claim they can help recover frozen cybercrime funds in exchange for a fee.
Police have stressed that the official restoration process itself is free.
Victims should therefore not pay agents claiming they can speed up refunds through the police or banking system.
The warning is important because people who have already suffered a cyber fraud can be particularly vulnerable to so-called recovery scams.
Criminals may obtain details of previous victims and approach them while posing as lawyers, police officers or recovery specialists.
The new online mechanism is intended to make the official route clearer and reduce dependence on intermediaries.
Rajasthan’s experience could also become significant for other states as police forces across India face large volumes of cyber-fraud complaints involving money successfully frozen but not yet returned.
What this means for you:
If you lose money to a cyber scam, report it immediately through 1930 or the National Cyber Crime Reporting Portal. If funds are successfully frozen, use the official restoration process and never pay private agents promising to recover the money.
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