Safety net for frauds: RBI proposes Rs 25,000 compensation for small-value digital losses

The Reserve Bank of India (RBI) on Friday proposed a framework to compensate bank customers for losses arising from small value fraudulent transactions, offering relief of up to ₹25,000 per account holder.

The move comes against a sharp surge in cyber fraud losses, which have risen nearly tenfold over three years to ₹22,845.73 crore in 2024 from ₹2,290.24 crore in 2022, according to a government disclosure in the Lok Sabha in December 2025. According to the RBI’s estimates, around two-thirds of digital frauds are under ₹50,000 in amount.