RBI Floats Proposal to Compensate Fraud Victims Up to ₹25,000
Customers May Get ₹25,000 Relief Under RBI’s New Fraud Compensation Plan: RBI Governor Sanjay Malhotra on Friday announced a new framework to compensate customers up to ₹25,000 for losses caused by small-value fraudulent transactions.
Speaking after the last Monetary Policy Committee meeting of the current financial year, Malhotra said the RBI will soon release a discussion paper on steps to strengthen digital payment security. These may include delayed credit of funds and additional authentication for certain customer groups, such as senior citizens. Under the delayed credit system, money from selected digital transactions would be credited to the recipient after a brief delay.
The Governor also said the RBI will issue draft guidelines in three areas: mis-selling of financial products, limiting customer liability in unauthorised electronic banking transactions, and loan recovery practices involving recovery agents.
He added that the existing rules on customer liability, issued in 2017, have been reviewed due to the rapid growth of digital banking. Revised guidelines, including the proposed ₹25,000 compensation framework, will be released soon for public consultation.
Malhotra also stressed the need to curb mis-selling, saying financial products sold at bank counters must match customers’ needs and risk appetite.
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