Surat's Gem and Jewellery Industry Applauds New SOP on Bank Account Freezes
The gem and jewellery industry in Surat has warmly welcomed a newly introduced standard operating procedure (SOP) that governs the freezing of bank accounts suspected of connections to cybercrime. Industry leaders assert that this development will provide significant relief to traders and manufacturers who have long endured operational disruptions due to arbitrary and sudden account freezes.
Addressing Industry Grievances
For some time, the sector has been grappling with numerous cases where bank accounts were frozen following cybercrime complaints, often without prior notification. The process to unfreeze these accounts was frequently unclear and time-consuming, leading to severe operational disruptions and financial hardship for legitimate businesses. Following repeated complaints and the freezing of hundreds of bank accounts involving crores of rupees, industry representatives took decisive action.
Dinesh Navadiya, chairman of the Indian Diamond Institute, along with the regional office of the Gem & Jewellery Export Promotion Council (GJEPC), raised the issue with the government. Navadiya explained that the matter was also escalated to Rajya Sabha MP Govind Dholakia, after which formal representations were made to Union Home Minister Amit Shah. "Within days, the government prepared the SOP and issued it for implementation," he noted, highlighting the swift response from authorities.
Key Features of the New SOP
According to the GJEPC, the SOP establishes a clear and time-bound framework for handling complaints related to cyber-enabled financial crimes. It mandates that actions such as placing funds on hold, suspending digital banking services, or freezing bank accounts must strictly adhere to legal provisions under the Bharatiya Nagarik Suraksha Sanhita (BNSS) and be supported by proper verification from investigating officers. The SOP also introduces uniform procedures for banks, financial intermediaries, and law enforcement agencies.
Importantly, it ensures that account holders are given an opportunity to explain disputed transactions and provides a structured grievance redressal mechanism. Navadiya emphasized a critical change: "Earlier, even the second to fifth accounts to which money was transferred from a suspicious account were being frozen by police in different states. That will no longer be allowed under the new SOP."
Boosting Confidence and Protecting MSMEs
Jayanti Savaliya, regional chairman of GJEPC, stated that this move will bring much-needed clarity and confidence to the industry. "The structured SOP ensures genuine traders are protected from arbitrary freezing of bank accounts while maintaining strong mechanisms to tackle cybercrime," he said. Navadiya added that sudden freezes often brought MSME operations to a standstill, causing significant distress. "The new SOP will ensure a fair and clearly defined process and provide relief to thousands of MSME traders who form the backbone of the industry," he affirmed.
This development marks a pivotal step towards balancing effective cybercrime enforcement with the protection of legitimate business interests, fostering a more stable environment for Surat's vital gem and jewellery sector.
