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RBI Drafts Compensation Plan for Small-Value Digital Frauds With Payouts Up to ₹25,000

Public comments are open until April 6 ahead of a one-year pilot starting for transactions on July 1.

Overview

  • Under the draft, bona fide victims of fraudulent electronic banking transactions up to ₹50,000 would receive 85% of net loss or ₹25,000, whichever is lower, once in their lifetime.
  • Eligibility hinges on reporting the incident to the bank and the National Cyber Crime portal or helpline (1930) within five calendar days.
  • Banks would have to credit approved compensation within five days, rule on complaints within 30 days, and share supporting logs if a claim is rejected.
  • Customers would have zero liability with reversal where fraud stems from bank negligence or specified third‑party breaches, with reversals value‑dated to the original transaction.
  • The pilot’s loss‑sharing model assigns most of the 85% payout to the RBI (65% for losses under ₹29,412 and ₹19,118 for higher small‑value cases), with the customer’s and beneficiary banks covering the remainder.