US EditionWe will compensate fraud-hit customers up to Rs 25,000, or 85 pc of total amount, as long as transaction is not malafide: RBI Governor.
- On Thursday, the Reserve Bank of India announced it will compensate 70% of small-value fraud losses up to Rs 25,000 for first-time incidents without questions.
- Recent figures indicate RBI official data show 13,469 card and internet fraud cases in fiscal 2025 with losses of Rs 520 crore, and 65% of digital fraud victims face losses under Rs 55,000.
- Funding for the payouts will come from the Rs 85,000‑crore Depositor Education and Awareness Fund, with 15% of losses split between customers and banks, who qualify once in their lifetime.
- The RBI plans to publish a draft compensation framework soon and roll out additional safety tools like lagged credit and extra authentication, with officials noting limited financial impact due to recoveries of about Rs 5,000 crore per year.
- The package aims to protect consumers while the RBI included the compensation scheme in wider regulatory measures, with Malhotra stressing the 'skin in the game' approach for affected fraud victims.
22 Articles
22 Articles
UPSC Key: RBI to compensate digital fraud victims, rat-hole mining, and Russian oil imports
UPSC CSE Feb 7, 2026: Key topics include RBI's plan to compensate up to ₹25,000 for small-value digital fraud, mis-selling guidelines, cyber security basics, and the role of digital payments in internal security and national governance.
RBI to compensate bank customers up to Rs 25,000 for digital fraud losses
Amid a rise in digital fraud cases, the Reserve Bank of India (RBI) on Thursday announced that banking customers will receive compensation of up to Rs 25,000 for fraudulent transactions. RBI Governor Sanjay Malhotra said customers would be eligible for compensation even in cases where they had shared a one-time password (OTP) with fraudsters. Compensation to be paid from DEA fund Central bank officials clarified that the compensation will be pai…
RBI acts on fraud: Customers to get up to Rs 25,000 compensation for losses incurred in small value fraudulent transactions, announces RBI
Bank customers who fall victim to small value financial fraud can now receive compensation. The Reserve Bank of India announced this new policy. Victims may get up to Rs 25,000. This decision was made by RBI Governor Sanjay Malhotra. The Monetary Policy Committee also kept the policy repo rate unchanged. This aims to protect customers from financial losses.
We will compensate fraud-hit customers up to Rs 25,000, or 85 pc of total amount, as long as transaction is not malafide: RBI Governor.
We will compensate fraud-hit customers up to Rs 25,000, or 85 pc of total amount, as long as transaction is not malafide: RBI Governor. We will compensate fraud-hit customers up to Rs 25,000, or 85 pc of total amount, as long as transaction is not malafide: RBI Governor.
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