RBI ready with a ₹25,000 shield for cyber fraud victims in India – The Economic Times

Clipped from: https://economictimes.indiatimes.com/news/economy/policy/cyber-fraud-rbi-ready-with-a-25000-shield-for-digital-fraud-victims-in-india/articleshow/127970508.cms

Synopsis

RBI MPC: The Reserve Bank of India on Friday proposed a framework to compensate customers up to ₹25,000 for losses from small-value fraudulent digital transactions as part of steps to strengthen digital payment safety and customer protection.

RBI MPC: The Reserve Bank of India on Friday proposed a framework to compensate customers up to ₹25,000 for losses from small-value fraudulent digital transactions, as part of measures to improve the safety of digital payments.

“It is proposed to introduce a framework to compensate customers up to an amount of Rs 25,000 for losses incurred in small-value fraudulent transactions.”

Governor Sanjay Malhotra, while delivering his address said, 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 un-authorised electronic banking transactions.”

“It is also proposed to introduce a framework to compensate customers up to an amount of ₹25000/- for loss incurred in small-value fraudulent transactions.”

RBI chief said, “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 class of users like senior citizens.”

Indian banks reported 13,469 cases of ‌frauds relating to card and internet-based transactions amounting to losses of Rs 520 crore in fiscal year 2024-25 after 29,080 frauds and losses of Rs 1,457 crore in 2023-24, RBI data showed.

RBI holds steady

RBI ‍kept its key repo rate unchanged on Friday, as expected, ⁠amid strong economic growth and reduced US tariff pressures following a trade agreement this week.

The rate-setting panel voted ‌to maintain the repo rate at 5.25%.

The central bank has now cut rates by a total of 125 basis points since February 2025, the most aggressive easing since 2019. It had cut rates by 25 basis points at its ‌last meeting ‍in December.

The Indian economy is expected ‍to grow 7.4% in the current financial ‌year and the government’s economic adviser has forecast growth at 6.8%-7.2% next year.