RBI revamps digital fraud compensation rules; expands customer safeguards | Business News
3 min readMumbaiJun 24, 2026 10:47 PM IST The Reserve Bank of India (RBI) on Wednesday unveiled a revised compensation mechanism for victims of digital payment frauds and widened its framework for limiting customer liability. According to the central bank, a bona fide victim who has lodged a complaint involving gross loss of up to Rs 50,000 on account of fraudulent electronic banking transaction (EBT) will be compensated 85% of the net loss amount or Rs 25,000, whichever is less, once during the lifetime. The victim should report the fraudulent EBT on the National Cyber Crime Reporting Portal or National Cyber Crime Helpline (1930) and to the bank within five calendar days from its occurrence, it said in the RBI (Commercial Banks – Responsible Business Conduct) Third Amendment Directions, 2026. The new directions will apply in cases of electronic banking transactions undertaken by customers of a bank on or after January 1, 2027. For a complaint related to fraudulent EBT involving a loss amount of less than Rs 29,412, where a compensation of 85% is …









