RBI issues draft guidelines on compensating customers for digital fraud

The Reserve Bank of India on Friday released draft guidelines for a compensation scheme aimed at protecting customers from digital fraud, offering coverage for up to 85 per cent of the lost amount or a maximum of 25,000 rupees ($271.98). 

The guidelines come amid a rise in fraud cases as digital payments see wider adoption in the country. 

Here are some details about the proposal: The RBI will cover 65 per cent of the losses, with banks covering an additional 20 per cent. 

The guidelines are initially valid for one year, after which the contribution structure will be reviewed. 

Customers must report fraudulent transactions within five days to the National Cyber Crime Reporting Portal or Helpline (1930) and their banks. 

 

Customers can avail of the compensation only once in their lifetime. 

The RBI aims to enhance existing instructions and reduce complaint processing time. New guidelines, once finalised, will be applicable from July 1.