{"id":366192,"date":"2026-06-27T15:35:44","date_gmt":"2026-06-27T10:05:44","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=366192"},"modified":"2026-06-27T15:35:44","modified_gmt":"2026-06-27T10:05:44","slug":"rbis-new-fraud-compensation-mechanism","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbis-new-fraud-compensation-mechanism\/","title":{"rendered":"RBI\u2019s New Fraud Compensation Mechanism"},"content":{"rendered":"<div class=\"content-box-green\">\n<p><strong>News:<\/strong>\u00a0The Reserve Bank of India introduced a revised fraud compensation mechanism for small-value digital payment frauds, effective from January 1, 2027.<\/p>\n<\/div>\n<h2 class=\"red-h2-box\"><strong>About RBI\u2019s New Fraud Compensation Mechanism<\/strong><\/h2>\n<figure id=\"attachment_366202\" aria-describedby=\"caption-attachment-366202\" style=\"width: 422px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-366202\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/06\/Source-ToI-1.jpg?resize=422%2C263&#038;ssl=1\" alt=\"RBI\u2019s New Fraud Compensation Mechanism\" width=\"422\" height=\"263\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/06\/Source-ToI-1.jpg?resize=300%2C187&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/06\/Source-ToI-1.jpg?resize=768%2C479&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/06\/Source-ToI-1.jpg?w=877&amp;ssl=1 877w\" sizes=\"auto, (max-width: 422px) 100vw, 422px\" \/><figcaption id=\"caption-attachment-366202\" class=\"wp-caption-text\">Source &#8211; ToI<\/figcaption><\/figure>\n<ul>\n<li><strong>RBI\u2019s New Fraud Compensation Mechanism<\/strong>\u00a0is a <strong>revised framework<\/strong> that <strong>provides compensation to eligible victims of fraudulent electronic banking transactions<\/strong> involving <strong>losses up to \u20b950,000.<\/strong>\n<ul>\n<li>The <strong>new framework builds on the RBI\u2019s Limited Liability Framework (2017, updated),<\/strong> which established that <strong>customers would have zero or limited liability<\/strong> if they reported unauthorized electronic banking transactions promptly.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Common Types of Digital Fraud:<\/strong> <strong>SIM swapping, phishing, vishing (voice call fraud), OTP theft, fake UPI handles, QR code scams, and AI-driven deepfake frauds<\/strong> are common forms of digital payment fraud.<\/li>\n<li><strong>Effective from:<\/strong> The revised framework will apply to electronic banking transactions <strong>undertaken on or after January 1, 2027.<\/strong><\/li>\n<li><strong>Aim<\/strong>: The framework <strong>aims to limit customer liability, strengthen customer protection, and improve banks\u2019 responsibility<\/strong> for fraud prevention and grievance redressal.<\/li>\n<li><strong>Key Features:<\/strong>\n<ul>\n<li><strong>Compensation<\/strong>: A bona fide victim <strong>can receive 85% of the net loss or \u20b925,000, whichever is lower,<\/strong> <strong>once during the lifetime<\/strong> for eligible fraud cases.<\/li>\n<li><strong>Eligibility<\/strong>: The customer <strong>must report<\/strong> the fraud to <strong>both the bank and the National Cyber Crime Reporting Portal or Helpline 1930<\/strong> <strong>within five<\/strong> calendar days.<\/li>\n<li><strong>Zero Liability:<\/strong> <strong>Customers will have zero liability<\/strong> if the fraud results from bank negligence or a third-party breach reported within five days.<\/li>\n<li><strong>Burden of Proof:<\/strong> <strong>Banks must establish customer negligence before rejecting<\/strong> any compensation claim.<\/li>\n<li><strong>Bank Obligations:<\/strong> Banks must <strong>provide 24\u00d77 complaint channels,<\/strong> instant <strong>SMS alerts for transactions above \u20b9500<\/strong>, <strong>email alerts<\/strong> where available, and <strong>direct complaint links on websites<\/strong> <strong>and<\/strong> <strong>mobile applications.<\/strong><\/li>\n<li><strong>Complaint Resolution<\/strong>: Banks must resolve complaints <strong>within 45 days for domestic frauds<\/strong> and <strong>60 days for cross-border frauds.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:\u00a0The Reserve Bank of India introduced a revised fraud compensation mechanism for small-value digital payment frauds, effective from January 1, 2027. About RBI\u2019s New Fraud Compensation Mechanism RBI\u2019s New Fraud Compensation Mechanism\u00a0is a revised framework that provides compensation to eligible victims of fraudulent electronic banking transactions involving losses up to \u20b950,000. The new framework builds&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbis-new-fraud-compensation-mechanism\/\">Continue reading <span class=\"screen-reader-text\">RBI\u2019s New Fraud Compensation Mechanism<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-366192","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/366192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=366192"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/366192\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=366192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=366192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=366192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}