What compensation is the RBI offering for digital fraud victims?

The RBI is proposing to compensate customers up to ₹25,000 or 85% of the loss, whichever is lower, for certain digital fraud incidents.

How will losses be shared under the new RBI digital fraud framework?

The new framework proposes that 15% of the loss will be borne by the customer, 15% by the lender, and the remaining portion by the RBI.

What other measures is the RBI taking to improve digital payment safety?

The RBI will issue guidelines to strengthen digital payment safety and frame norms on loan recovery practices and engagement of recovery agents.

Home / Business and Economy / RBI to Compensate Digital Fraud Victims Up to ₹25,000

RBI to Compensate Digital Fraud Victims Up to ₹25,000

7 Feb

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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.

RBI to Compensate Digital Fraud Victims Up to ₹25,000

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.