RBI Proposes New Rules for Digital Fraud, Customers to Get Refund up to 25000 Rupees

The Reserve Bank of India (RBI) has introduced a new draft framework to protect common people from losing money in online scams. This new proposal aims to help customers who fall victim to fraudulent digital transactions. According to the draft released on March 6, 2026, banks will have to take more responsibility for unauthorized transactions. If approved, these rules will bring relief to millions of users who use UPI, net banking, or cards for daily payments.

Zero Liability and Compensation Rules

The RBI has stated that customers will have zero liability if a fraud happens due to the bank’s negligence or a third-party system breach. For these cases, the customer does not even need to prove the error immediately. If the fraud is due to a system fault and is reported within five days, the customer is safe from loss. For small-value frauds up to 50,000 rupees, the RBI has proposed a special compensation plan.

• Refund Amount: Victims can get 85% of the loss or 25,000 rupees, whichever is lower.
• One-Time Benefit: This compensation is available once in a lifetime for a customer.
• Condition: The incident must be reported within 5 calendar days.

Reporting Process and Important Dates

To claim this refund, a customer must act quickly. The draft mandates that the victim must report the unauthorized transaction to their bank and also register a complaint on the National Cyber Crime Reporting Portal or Helpline 1930. The burden of proving that the customer was at fault lies entirely with the bank. The RBI has set a timeline for these changes to take effect.