<p>New Delhi: The Reserve Bank of India (RBI) will provide up to Rs 25,000 as compensation to bank customers who become victims of small-value financial frauds, Governor Sanjay Malhotra said on Friday.</p><p>In his statement after the 59th meeting of the Monetary Policy Committee, Malhotra said the central bank will come out with a framework for compensation in case of small-value fraudulent transactions.</p><p>He said the RBI would pay 70% or up to Rs 25,000 lost in fraudulent transactions without any questions being asked to the customer for the first time instances. The rest of the 30% of the loss will be equally shared by the customer (15%) and the concerned bank.</p><p>This will be a once-in-lifetime benefit for the victims of fraud, including those who shared OTPs. The money will be paid from the Rs 85,000-crore Depositor Education and Awareness Fund.</p>.Stock markets decline in early trade dragged by IT firms; RBI policy in focus.<p>Alongside curbing digital frauds, Malhotra also announced tightening of norms to curb mis-selling of financial products by regulated entities. “For customer protection, we will issue three draft guidelines: one, relating to mis-selling; two, regarding recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in unauthorised electronic banking transactions.”</p><p>“We will also publish a discussion paper on possible measures to enhance the safety of digital payments. Such measures may include lagged credits and additional authentication for specific classes of users like senior citizens,” Malhotra added.</p><p>Development and regulatory policies have focused on reforming the current practice on cross-selling, methods of loan recovery using agents and framework for compensation in case of small value fraudulent transactions, SBI Group Chief Economic Advisor Soumya Kanti Ghosh said in a note.</p><p>“A Discussion Paper to curb frauds in digital payment will be exploring the introduction of calibrated safeguards in digital payments such as introduction of lagged credits,” he noted.</p><p>The number of banking frauds increased from 13,494 in 2022-23 to 23,879 in the financial year ended March 2025.</p>
<p>New Delhi: The Reserve Bank of India (RBI) will provide up to Rs 25,000 as compensation to bank customers who become victims of small-value financial frauds, Governor Sanjay Malhotra said on Friday.</p><p>In his statement after the 59th meeting of the Monetary Policy Committee, Malhotra said the central bank will come out with a framework for compensation in case of small-value fraudulent transactions.</p><p>He said the RBI would pay 70% or up to Rs 25,000 lost in fraudulent transactions without any questions being asked to the customer for the first time instances. The rest of the 30% of the loss will be equally shared by the customer (15%) and the concerned bank.</p><p>This will be a once-in-lifetime benefit for the victims of fraud, including those who shared OTPs. The money will be paid from the Rs 85,000-crore Depositor Education and Awareness Fund.</p>.Stock markets decline in early trade dragged by IT firms; RBI policy in focus.<p>Alongside curbing digital frauds, Malhotra also announced tightening of norms to curb mis-selling of financial products by regulated entities. “For customer protection, we will issue three draft guidelines: one, relating to mis-selling; two, regarding recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in unauthorised electronic banking transactions.”</p><p>“We will also publish a discussion paper on possible measures to enhance the safety of digital payments. Such measures may include lagged credits and additional authentication for specific classes of users like senior citizens,” Malhotra added.</p><p>Development and regulatory policies have focused on reforming the current practice on cross-selling, methods of loan recovery using agents and framework for compensation in case of small value fraudulent transactions, SBI Group Chief Economic Advisor Soumya Kanti Ghosh said in a note.</p><p>“A Discussion Paper to curb frauds in digital payment will be exploring the introduction of calibrated safeguards in digital payments such as introduction of lagged credits,” he noted.</p><p>The number of banking frauds increased from 13,494 in 2022-23 to 23,879 in the financial year ended March 2025.</p>