RBI to Unveil Strict New Rules: Major Impact on Borrowers, Investors & Banks

• The Reserve Bank of India (RBI) will issue comprehensive rules on advertising, marketing, and sales for financial institutions to prevent mis-selling.
• RBI is reviewing existing instructions for loan recovery agents and collaborating on digital/cyber fraud prevention with new AI platforms like MuleHunter.AI and Digital Payments Intelligence Platform (DPIP).
• Existing customer liability rules for unauthorized electronic banking transactions are under review to enhance protection amidst evolving fraud patterns.
• In FY 2024-25, the total number of reported fraud cases decreased, but the amount involved increased, largely due to re-examination of 122 cases (Rs 18,336 crore).
• RBI's future regulatory focus includes cybersecurity, fraud prevention, customer protection, climate risk awareness, and financial stability.

Why It Matters: RBI strengthens financial regulations to protect consumers, combat fraud, and ensure sector stability.