Focus on easing regulatory frictions

Safety net announced for victims of small-value digital frauds

- KSHIPRA PETKAR

IN A MAJOR step to strengthen customer protection in the digital payments ecosystem, the Reserve Bank of India (RBI) on Friday proposed a framework to compensate customers for losses arising from small-value fraudulent transactions, with a cap of ₹25,000.

The plan comes against the backdrop of a surge in frauds amid growing penetration of digital payments in the world’s most populous country.

“There is skin in the game for the customer (15%), banks (15%) and the remaining amount we propose to provide from the Reserve Bank. But for small customers, for whom even these amounts mean a lot, this is a way of providing some immediate relief,’ Governor Sanjay Malhotra said.