RBI: Get up to ₹25,000 back from digital fraud

Starting January 1, 2027, new Reserve Bank of India (RBI) rules will provide financial recourse for victims of digital fraud in India. These regulations, active for one year, aim to mitigate losses from deceptive online schemes. Digital fraud victims may be eligible for compensation, calculated at 85% of their net loss or a maximum of ₹25,000, whichever is lower. This benefit is a one-time provision per customer's lifetime. A significant shift in liability means banks must now prove customer involvement in fraudulent electronic banking transfers (EBTs), covering transactions like POS, ATM, and internet banking.

Previously, victims often realized losses only after funds were debited, facing a complex reporting and refund process. The RBI's directive aims to simplify this by placing the onus on banks to investigate and credit eligible compensation. While customers receive funds from their banks, the RBI and participating banks will share the ultimate financial burden based on transaction value and type. Citizens are urged to report any fraudulent EBTs immediately to their banks and through the National Cyber Crime Reporting Portal or helpline (1930). These measures come amid substantial cyber-enabled fraud losses reported in India.