Digital fraud: RBI ups compensation to 85% with cap of Rs 25,000 for first loss

MUMBAI: The RBI has issued amended directions proposing stronger safeguards for customers facing digital fraud by increasing the compensation percentage to 85 but capping the absolute pay-out at Rs 25,000 for the first instance. The new directions will be effective July 1.

Issuing the third draft amendment direction, 2026, under the central bank’s ‘responsible business conduct’ framework, the RBI said Friday that the new rules primarily protect bank customers from fraud in digital banking transactions, including UPI payments, Internet banking, mobile banking, debit/credit card transactions and ATM transactions.