Surat diamond industry relieved as govt issues SOP on bank account freezing 

Surat | Gujarat — The gem and jewellery industry, particularly Surat’s globally renowned diamond sector, has heaved a major sigh of relief after the Central Government introduced a structured Standard Operating Procedure (SOP) governing the freezing of bank accounts in suspected cyber fraud cases.

In the last one year or so, about 500 bank accounts belonging to the diamond and jewellery companies were freezed on the suspicion of cyber frauds. About Rs 20,000 crore worth of funds in the bank were freezed by the law enforcement agencies in Kerala, Haryana, Uttar Pradesh, Andhra Pradesh, Maharashtra etc. 

For months, traders had been grappling with sudden bank account freezes triggered by cybercrime complaints, often without prior notice or a clear mechanism for resolution. The issue had disrupted daily operations of businesses, especially small and medium enterprises that depend on seamless financial transactions.

The development follows sustained efforts by the Gem & Jewellery Export Promotion Council (GJEPC), which raised the concerns of traders with the Government of India. The matter was formally brought to the attention of Amit Shah, India’s Union Home Minister, after several cases of arbitrary account freezes caused operational hardships for genuine businesses.

Surat, widely known as the global hub for diamond cutting and polishing, has thousands of small traders who rely on continuous banking access to manage daily payments and international transactions. Industry representatives warned that sudden account freezes could paralyse operations overnight.

Recognising the seriousness of the issue, GJEPC’s Surat Regional Office initiated discussions with officials of the Ministry of Home Affairs and the Indian Cyber Crime Coordination Centre (I4C). During the consultations, industry representatives explained the practical difficulties faced by traders due to unclear procedures in cybercrime-related financial investigations.

Following these deliberations, the Home Ministry introduced a comprehensive SOP under the NCRP–CFCFRMS framework to ensure greater transparency and accountability.

The new framework mandates that actions such as freezing bank accounts, suspending digital banking services, or placing funds on hold must follow defined legal provisions under the Bharatiya Nagarik Suraksha Sanhita and must be supported by proper verification by investigating authorities.

Industry leaders say the move will significantly reduce arbitrary actions and ensure a balanced approach between cybercrime enforcement and business continuity.

Jayanti Savaliya, Regional Chairman of GJEPC for Gujarat, said the decision would restore confidence within the trade ecosystem.

“This development will bring much-needed clarity and confidence to the gem and jewellery trade. The introduction of a structured SOP ensures that genuine traders are protected from arbitrary freezing of bank accounts while maintaining strong mechanisms to tackle cybercrime,” Savaliya said.

Dinesh Navadiya, member of the Gujarat Regional Committee of GJEPC, emphasized that the relief will be particularly significant for MSMEs.

“For MSMEs in the gem and jewellery sector, sudden freezing of bank accounts can completely halt day-to-day operations. The new SOP will provide a fair and clearly defined mechanism ensuring that small and medium enterprises are not subjected to undue hardship,” he noted.

The SOP also establishes 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.

GJEPC Chairman Kirit Bhansali thanked the government for acting swiftly on the industry’s concerns.

“The formulation of this SOP is a significant step towards balancing effective cybercrime enforcement with the protection of legitimate businesses,” Bhansali said.