Source: Reuters (via feed)
The Reserve Bank of India (RBI) has issued draft guidelines for a compensation scheme to protect customers from digital fraud. The scheme proposes compensation of up to 85% of the lost amount due to fraud. However, the maximum compensation would be capped at 25,000 rupees ($271.98).
The draft guidelines aim to set clear standards for banks and other financial institutions to follow in fraud cases. Customers who face losses due to unauthorized digital transactions could benefit from these protections. The RBI has sought public comments on the draft before finalizing the rules.
These measures come as digital payments grow in India, raising concerns about security. Meanwhile, the RBI’s approach may help reduce customer losses and improve confidence in digital financial services.
This draft establishes a framework for financial institutions to compensate customers for digital fraud losses. It highlights growing regulatory focus on consumer protection in India’s digital finance sector.
