Digital frauds: RBI raises compensation to 85%

ACTING swiftly on what Governor Sanjay Malhotra had indicated at the last post-policy press conference, the Reserve Bank has proposed stronger safeguards for victims of digital financial fraud.

- BENN KOCHUVEEDAN @ Mumbai

Under the revised draft guidelines, the RBI has raised compensation to 85% of the loss, while capping payout at ₹25,000 for the first instance of fraud. The new rules will take effect from July 1, 2026.

"The draft directions revising earlier rules on limiting customer liability for unauthorised electronic banking transactions will apply to transactions carried out on or after July 1, 2026. They will cover commercial banks, excluding small finance banks, payments banks, regional rural banks and local area banks," the RBI said.