Influencer Regulation, Aadhar Linked Digital IDs: Rajasthan High Court Issues Sweeping Directions For Cyber Safety Reforms

The Rajasthan High Court has issued a bunch of directions to different State departments to handle the issue of cyber crimes, artificial intelligence as well as deep fake, for ensuring digital safety and security of the residents.The bench of Justice Ravi Chirania was hearing bail applications of two young adults who were accused of impersonating themselves as Sub-Inspectors to an elderly couple of more than 80 years of age, and extorting over Rs. 2 crores from them by putting them under digital arrest. While rejecting the bail application of the petitioners, the Court observed that the cases of digital arrest, committed by misusing the information technology were growing at a fast pace, having the same modus operandi in all. “The concern of almost all Courts etc. in the country from Hon'ble Supreme Court, All High Courts, All District Courts, all States/ UT's ,the Police and other Investigating Agencies etc. is how to handle this new, unstoppable and exponentially growing problem which is before them due to fast changing digital technology. The digital world/information technology has seriously affected the following: (i) society and personal life of common man (ii) the economy of the country (iii) law and order (iv) the education system (v) the banking system etc.”The Court opined that if the banks and financial institutions were able to put complete check on the banking activities, the problem of cyber crimes could be controlled to a large extent. Furthermore, the Court also highlighted the platform “14C-MHA” put in place by the Centre as a coordination centre to freeze and put on hold fraud money collected using digital technology. In this light, the Court highlighted that every state was required to have its own system in place to monitor, control and investigate the measures to control cyber crimes. It was also observed that traditional police force had very little knowledge and understanding to handle digital challenges, and hence, experts were required. In the background of these observations, the following directions were issued by the Court to handle the challenge of increasing cyber crimes: Issuance of notification for establishment of Rajasthan Cyber Crime Control Centre (R4C) in lines with the 14C, to working in coordination with 14C, and ensuring that R4C have all powers similar to 14C. State to start a toll free number (apart from 1930) for automatic registration of FIRs which would be transferred to respective Cyber Police Station. This must start from February 1, 2026. Additional Chief Secretary, Home (“ACS”) to take steps to appoint inspectors exclusively for the office of DG (Cyber) without taking much time in administrative consent/approvals, who shall not be transferred to any other department except on deputation. ACS to expedite the setting up of accredited lab as required under Section 79(a) of the IT Act, 2000, which shall be equipped with required latest digital technology and infrastructure. Instructions to be given to all banks, financial institutions, fintech companies etc, to use AI tools in ATM softwares to detect and stop/block the use of multiple ATM cards when it is used by unauthorized person. To be ensured that all nationalized and private banks, fintech companies etc strictly acted to control and monitor mule accounts in the State. They must use Mule hunter (AI) tool (developed by RBI) to detect mule accounts and trace mule money. All dead/inactive bank accounts to be put under strict vigil and their KYC must be done again. Instructions to be given to all banks, financial institutions, fintech companies etc, to not permit and/or stop internal banking for account holders whose activities appeared suspicious, and/or who had annual transactions of less than Rs. 50,000 per annum in last 3 years, and/or who were not digitally literate. Daily UPI limit also to be set for such account holders. All banks, financial institutions, fintech companies etc, to also strictly monitor bulk transfers and posting of amounts by unknown person/unauthorized and suspicious person etc. ACS to issue directions for registration of and regulation of the sale and purchase and other connected activities of all companies, shopkeepers etc which were engaged in commercial activity of sale and purchase of original and second-hand devices. Details of all such sales to contain all particulars of the device and must be immediately uploaded on the system under the control of DG Cyber. Any sale that breaches this process shall lead to cancellation of such dealers' registration. Detailed circular to be issued in this regard that shall come into effect from February 1, 2026. ACS to ensure that no individual person is issued more than 3 SIM cards in the State.All call centres, BPO, etc involved in any kind of telemarketing, digital communications and for providing any other digital service etc., operating in the State must be registered with DG, Cyber. ACS to issue detailed circular and SOP for such...

Influencer Regulation, Aadhar Linked Digital IDs: Rajasthan High Court Issues Sweeping Directions For Cyber Safety Reforms

Nupur Agrawal

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