cyber financial fraud

RBI’s new framework to safeguard customers from digital fraud

The Reserve Bank of India has proposed a new customer protection framework to compensate individuals up to ₹25,000 for losses arising from small-value digital frauds, reflecting the growing risks in India’s rapidly expanding digital payments ecosystem. Along with revising the existing customer liability norms for unauthorised electronic transactions, the RBI plans to introduce measures such as enhanced authentication for high-risk users and additional safeguards to improve payment security. The central bank has also proposed draft guidelines to curb mis-selling of financial products, harmonise conduct norms for loan recovery agents, and strengthen institutional capacity through initiatives like Mission SAKSHAM for Urban Cooperative Banks. Collectively, these measures aim to enhance consumer trust, improve regulatory oversight, and ensure the safe, inclusive, and resilient growth of the digital financial system.