As digital services grow rapidly, life has become easier for people.
However, cases of online fraud are also increasing at the same time.
To address this problem and protect customers, the Reserve Bank of India (RBI) has introduced an important proposal.
Under this proposal, people who become victims of small-value digital banking fraud may receive compensation for their losses.
The central bank believes this step will provide some financial relief to affected customers.
Compensation Up to ₹25,000
According to the proposal by the Reserve Bank of India, victims may receive compensation of up to 85 percent of the total loss.
However, the maximum amount that can be paid is ₹25,000.
The RBI has also clarified that this compensation will be provided only once to an individual.
This means if a person becomes a victim of digital fraud again in the future, they will not receive compensation multiple times under this scheme.
When Could the New Rules Start?
The Reserve Bank of India released the draft amendment for this proposal on March 6.
The idea was also mentioned earlier by RBI Governor Sanjay Malhotra during the monetary policy announcement on February 6.
If approved, the new rules could apply to digital banking transactions made on or after July 1, 2026.
For now, the proposal is still in draft form.
The RBI has invited public feedback, and people can send their suggestions or comments until April 6, 2026.
How Will the Compensation Be Shared?
The compensation amount will be shared by different parties depending on the total loss.
If a person loses less than ₹29,412 and the compensation is calculated at 85 percent, the Reserve Bank of India will bear 65 percent of the amount.
The remaining 20 percent will be divided equally between the customer’s bank and the beneficiary bank, with each paying 10 percent.
In cases where the total loss is between ₹29,412 and ₹50,000, the maximum compensation allowed will still be ₹25,000.
Out of this amount, the RBI will contribute ₹19,118.
This proposal aims to strengthen customer protection and reduce the financial impact of small digital fraud cases.
