RBI Proposes Digital Fraud Cover
Draft scheme offers compensation up to 85% of loss or ₹25,000 for victims of online fraud
- RBI releases draft guidelines for digital fraud compensation scheme
- Customers may receive up to 85% of lost amount, capped at ₹25,000
- Fraud must be reported within five days to cyber portal or helpline
- Proposed rules likely to come into effect from July 1
GG News Bureau
Mumbai, 6th March: The Reserve Bank of India (RBI) on Friday released draft guidelines proposing a compensation scheme aimed at protecting customers from losses caused by digital fraud.
Under the proposed framework, victims of digital fraud may receive compensation of up to 85 percent of the lost amount or a maximum of ₹25,000, whichever is lower.
The move comes amid a rising number of fraud cases as digital payments continue to expand rapidly across the country.
According to the draft proposal, the RBI will cover 65 percent of the loss, while banks will contribute an additional 20 percent, together accounting for the 85 percent compensation limit.
The scheme is initially proposed to remain in effect for one year, after which the contribution structure will be reviewed by the central bank.
To qualify for compensation, customers must report the fraudulent transaction within five days through the National Cyber Crime Reporting Portal, the cybercrime helpline 1930, and also inform their respective banks.
The RBI has specified that the compensation under the scheme can be availed only once in a customer’s lifetime.
The central bank said the initiative is aimed at strengthening existing consumer protection measures in digital payments and reducing the time required to process complaints related to fraud.
Once finalised, the new guidelines are expected to come into effect from July 1.
