Customer Protection: RBI provides safety net for digital fraud victims

In a major step to strengthen customer protection in the digital payments ecosystem, the Reserve Bank of India (RBI) on Friday proposed a framework to compensate customers for losses arising from small-value fraudulent transactions, with a cap of Rs 25,000.

“There is skin in the game for the customer (15%), banks (15%) and the remaining amount we propose to provide from the Reserve Bank. But for small customers, for whom even these amounts mean a lot, this is a way of providing some immediate relief,” Malhotra said.