Compensation up to ₹ 25,000 will be given in case of digital fraud: RBI’s new draft framework ready, suggestions sought on it till April 6

The Reserve Bank of India (RBI) has released a new draft framework ‘Customer Liability in Digital Transactions’ to protect customers from fraud in digital transactions. Under this, if a customer faces digital fraud and reports it immediately, he can get compensation up to Rs 25,000.

The new rules aim to reduce the time taken in resolving bank complaints and create a better compensation mechanism for small value frauds. RBI has sought suggestions from the public and stakeholders on this draft by April 6, 2026. After this the government will implement it.

Up to 85% of the fraud amount can be recovered According to the proposed rules, if a digital fraud up to Rs 50,000 occurs and the customer reports it on time, he can get back 85% of the loss or ₹25,000 (whichever is lower).

RBI believes that this will not only increase customer confidence but will also make the digital payment ecosystem more secure. This compensation mechanism will be effective for one year from the date of implementation, after which it will be reviewed based on its experiences.

Understand with example how much money you will get back in case of fraud.

first position : If there is a fraud of ₹ 10,000, then ₹ 8,500 will be refunded at the rate of 85%.

Second situation: If there is a fraud of ₹ 40,000, then according to 85%, ₹ 34,000 is made, but the limit is ₹ 25,000, so only ₹ 25,000 will be received.

Why was there a need to change the rules of 2017? RBI said that the current rules were issued in the year 2017. In the last 7-8 years, the method of digital banking and payment has completely changed. Now apart from unauthorized transactions, many new types of electronic frauds are also emerging.

Keeping this in mind, it has been decided to expand the scope of the old rules so that all types of digital fraud can be covered under it.

Complaint cases will be resolved soon, accountability on banks will increase One of the main objectives of the new draft is to reduce the time taken by banks to process complaints. It is often seen that after fraud, customers have to wait for months for refund.

RBI wants banks and financial institutions to speed up this process. In future, RBI will also consider reducing its share in compensation payment and increasing the share of banks.

Common people can give suggestions till 6th April RBI has uploaded this draft on its website. Regulated entities (Banks/NBFCs) and general public can send their feedback on this through email. The rules will be finalized after receiving feedback.

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