RBI Strengthens Customer Safeguards Against Mis-selling & Digital Fraud

• RBI to issue comprehensive norms to prevent mis-selling of financial products and services by regulated entities.
• Instructions on recovery agents and loan recovery are under review for harmonization.
• RBI collaborates with MHA to curb digital fraud, deploying tools like MuleHunter.ai and DPIP.
• Existing limited liability norms for unauthorized electronic banking transactions are being reviewed to enhance customer safeguards.
• Frauds decreased in number but increased in amount in 2024-25; private banks led in number, public banks in amount.

Why It Matters: RBI implements new norms and initiatives to protect customers from mis-selling and digital fraud.