Cyber scammed? RBI plans compensation up to Rs 25,000

MUMBAI: The RBI is proposing to compensate customers for losses arising from small-value digital frauds, with payouts of up to Rs 25,000, as part of a broader overhaul of consumer protection rules amid rising risks from mis-selling, cyber fraud and aggressive loan recovery practices. The e-fraud compensation will be for 85% of the loss amount or Rs 25,000 whichever is less and will be a once-in-lifetime benefit for those who have lost money including those who have shared one-time passwords.

Governor Sanjay Malhotra said the central bank has reviewed its 2017 framework on limiting customer liability in unauthorised electronic banking transactions, citing rapid technological adoption in banking and payments since then.