Reserve Bank of India (RBI) to compensate ₹25,000 for small digital fraud losses.

Key facts

• Reserve Bank of India (RBI) will compensate customers up to ₹25,000 or 85% of the loss, whichever is lower, for small-value digital frauds.
• The compensation is a one-time relief and applies to frauds below ₹50,000 which account for nearly 65% of fraud cases in number terms.
• Under the proposed structure, 15% of the loss will be borne by the customer, 15% by the bank, and the remaining by RBI.
• RBI is reviewing its 2017 framework on customer liability in unauthorised electronic banking transactions and will issue draft revised instructions shortly.
• RBI will issue guidelines for enhanced authentication for senior citizens and calibrated safeguards in digital payments including lagged credits.
• RBI will issue comprehensive instructions to banks and non-bank lenders on advertising, marketing and sale of financial products to prevent mis-selling.
• RBI will release harmonised guidelines on loan recovery practices and norms governing engagement of recovery agents for borrower protection.