RBI's Fraud Compensation Plan Hits Paytm, MobiKwik Shares; Up to 3.5% Fall

• Paytm and MobiKwik shares dropped up to 3.5% following an RBI announcement regarding customer compensation for small-value fraudulent transactions.
• RBI Governor Sanjay Malhotra stated a framework will be proposed to compensate customers up to Rs 25,000 for losses from small-value digital payment frauds.
• The move aims to enhance customer protection and digital payment safety, with draft guidelines to be issued shortly.
• RBI data shows Indian banks reported 13,469 card and internet fraud cases totaling Rs 520 crore in FY24-25, and 29,080 cases with Rs 1,457 crore losses in FY23-24.
• The central bank will also issue guidelines on misselling by lenders, loan recovery, and a discussion paper on digital payment safety measures.