The Reserve Bank of India is planning to introduce a compensation system for customers who fall victim to small digital frauds, offering reimbursement of 85% of the lost amount or up to ₹25,000, whichever is lower. This relief will be available only once in a person’s lifetime and will apply even to individuals who mistakenly shared their one-time passwords. RBI Proposes One-Time Compensation of Up to ₹25,000 for Small Digital Fraud Victims The proposal is part of a wider effort to strengthen consumer protection rules, especially as concerns grow over cybercrime, misleading financial product sales, and forceful loan recovery methods. RBI Governor Sanjay Malhotra explained that the central bank has reassessed its 2017 guidelines that were designed to limit customer liability in cases of unauthorised electronic banking transactions. The review was prompted by the rapid expansion of digital banking and payment technologies over the past several years. He stated, “Accordingly, the draft revised instructions, including a framework for compensation in case of small value fraudulent transactions, shall be issued shortly for public consultation,” indicating that the new rules will soon be open for feedback from the public. Malhotra added that while customers should ideally learn from others’ mistakes, the RBI… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
