In the digital age, cases of cyber fraud are increasing rapidly across the world, including in Reserve Bank of India’s jurisdiction in India.
Online fraudsters are using new tricks every day to cheat people. Because of this, many people are worried, as cyber criminals can steal someone’s life savings within minutes.
To address this growing concern, the Reserve Bank of India (RBI) has proposed a new rule that could provide relief to victims of digital payment fraud.
The proposal focuses on compensation for people who lose money through Unified Payments Interface (UPI) fraud and other digital banking scams.
This rule may come into effect soon. Let’s understand what this new RBI rule means and how it may help people.
What Is RBI’s New Rule?
According to the proposal by the Reserve Bank of India, customers may be able to recover part of their losses if they become victims of digital banking fraud.
Under this rule, people could receive compensation of up to ₹50,000 for losses caused by online fraud.
The RBI has also explained when the bank will be responsible for a fraud and when the customer may be considered responsible.
In addition, it has clarified the process for filing complaints in case of fraud. If the proposal is approved, the rule could be implemented from July 1, 2026.
Which Transactions Will Be Covered?
The proposed rule will apply to many types of digital transactions. This includes payments made through Unified Payments Interface (UPI), internet banking, mobile banking, debit cards, credit cards, and ATM transactions.
If any unauthorized transaction happens through these digital channels, customers may receive protection and support under the new rule.
Which Banks Will Follow These Rules?
At present, the proposal applies only to commercial banks. Small finance banks, payment banks, and regional rural banks (RRBs) will not be covered under these rules for now.
How Much Money Can Be Recovered After Fraud?
If the new rule is implemented by the Reserve Bank of India, customers may receive compensation of up to ₹50,000 in case of digital fraud.
According to the proposal, victims could get compensation of up to 85% of the total loss, but this amount will be limited to ₹25,000.
However, this benefit can be claimed only once in a lifetime. It is also very important for customers to report the fraud to their bank quickly, as timely reporting is required to receive compensation.
