Amid rising cases of digital frauds, the Reserve Bank of India (RBI) has proposed compensating up to ₹25,000 to customers who lose money to small-value fraudulent transactions, governor Sanjay Malhotra said. “We will also publish a discussion paper on possible measures to enhance the safety of digital payments. Such measures may include lagged credits and additional authentication for specific classes of users like senior citizens,” the governor said after the meeting of the central bank’s Monetary Policy Committee (MPC). In a bid to protect customers from cyber frauds, the RBI also plans to review the framework to limit customer liability in digital transactions. “The extant instructions on limiting the liability of customers in unauthorised electronic banking transactions were issued in 2017, which deal with scenarios and timelines for zero / limited liability of a customer. In view of the rapid adoption of technology in the banking sector and payments systems, since issuance of these instructions, the existing instructions have been reviewed. Accordingly, the draft revised instructions, including a framework for compensation in case of small-value fraudulent transactions, shall be issued shortly for public consultation,” the RBI said in its statement on developmental and regulatory policies. This comes at a time… Read MoreInc42 Media
