The Indian government has introduced a new standard operating procedure (SOP) governing the freezing of bank accounts during cybercrime investigations, a move that has brought relief to the diamond industry in Surat after months of financial disruption.

The SOP, issued by the Ministry of Home Affairs (MHA), aims to establish clearer procedures for law enforcement agencies before directing banks to freeze accounts linked to suspected cyber fraud. The new guidelines are expected to prevent arbitrary actions that previously affected legitimate businesses in the diamond manufacturing hub.

Over the past several months, numerous diamantaires in Surat reported that their bank accounts had been frozen after being flagged in cybercrime complaints, often without prior notice. Industry members said such freezes disrupted routine financial transactions, including payments to workers, suppliers and trading partners, creating operational challenges for manufacturers and exporters.

Trade bodies and industry representatives had raised the issue with authorities, highlighting the widespread impact on Surat’s diamond ecosystem. The sector plays a central role in India’s gem and jewellery exports, with the city accounting for a significant share of the world’s diamond cutting and polishing activity.

According to industry stakeholders, the newly issued SOP introduces checks and procedural safeguards to ensure that account freezes follow due verification and are limited to specific circumstances linked to investigations.

Market participants say the move is expected to restore confidence among diamantaires and ensure smoother financial operations, while allowing law enforcement agencies to continue addressing cyber fraud cases.