RBI Proposes Draft Amendment on Customer Liability in Digital Transactions, Seeks Public Input
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RBI Boosts Digital Transaction Security: New Rules Offer Wider Customer Safeguards
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CNBC TV18•08-03-2026, 13:53
RBI Boosts Digital Transaction Security: New Rules Offer Wider Customer Safeguards
•RBI proposes draft amendment for digital transaction liability, enhancing customer safeguards and introducing a compensation framework for small-value fraud.
•New rules, effective July 1, 2026, expand "authorized transactions" to include scam/fraud, placing burden of proof on banks for customer liability.
•Customers get zero liability for bank negligence or third-party breaches reported within 5 days; banks must provide instant SMS alerts for transactions > ₹500 and 24x7 fraud reporting.
•Compensation for small-value fraud (up to ₹50,000): 85% of net loss or ₹25,000, whichever is lower, available once per individual.
•RBI contributes significantly to compensation, with banks bearing a smaller portion; banks must pay within 5 days and seek quarterly reimbursement.
