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RBI to Compensate Digital Fraud Victims Up to ₹25,000
7 Feb
Summary
- Customers to receive compensation up to ₹25,000 for digital fraud losses.
- RBI introduces enhanced security for senior citizens' digital transactions.
- New framework aims to share losses between customer, lender, and RBI.
In a significant move to protect banking customers, the Reserve Bank of India (RBI) has announced new consumer protection measures addressing increasing digital fraud incidents. These measures include a proposal to compensate customers up to ₹25,000 for losses incurred due to small-value digital frauds.
The RBI governor stated that approximately 65% of fraud cases involve amounts below ₹50,000. Under the new framework, customers will be compensated for up to 85% of their loss, capped at ₹25,000, with a 15% share borne by the customer and 15% by the lender.
Further initiatives include issuing guidelines to strengthen digital payment safety and establishing comprehensive norms for loan recovery practices. The central bank is also reviewing its 2017 framework on customer liability for unauthorized electronic transactions, with draft revised instructions to be released for public consultation.
