RBI Proposes Rs 25,000 Compensation for Fraud Victims, New Rules for Digital Payments

• RBI Governor Sanjay Malhotra announced a new framework to compensate customers up to Rs 25,000 for losses from small-value fraudulent transactions.
• A discussion paper will be published on enhancing digital payment safety, including lagged credits and additional authentication for specific users.
• Three draft guidelines will be issued for customer protection: mis-selling, loan recovery/recovery agents, and limiting customer liability in unauthorized electronic banking transactions.
• The existing 2017 instructions on customer liability in unauthorized electronic banking transactions are being reviewed and revised.
• RBI will launch Mission SAKSHAM (Sahakari Bank Kshamta Nirman) for capacity building in Urban Cooperative Banks, targeting 1.40 lakh participants.