'85% Coverage': RBI Issues Draft Digital Fraud Compensation Guidelines

The Reserve Bank of India on Friday released draft guidelines for a compensation scheme aimed at protecting customers from digital fraud, offering coverage for up to 85% of the lost amount or a maximum of 25,000 rupees ($271.98).

The guidelines come amid a rise in fraud cases as digital payments see wider adoption. 

Here are some details about the proposal:

• The RBI will cover 65% of the losses, with banks coveringan additional 20%.
• The guidelines are initially valid for one year, after which the contribution structure will be reviewed.
• Customers must report fraudulent transactions within five days to the National Cyber Crime Reporting Portal or Helpline(1930) and their banks.
• Customers can avail the compensation only once in their lifetime.
• The RBI aims to enhance existing instructions and reduce complaint processing time.

New guidelines, once finalised, will be applicable from July 1.

($1 = 91.9190 Indian rupees)

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