RBI Proposes Compensation Scheme for Small-Value Digital Banking Frauds from July 2026

The Reserve Bank of India (RBI) has proposed draft guidelines effective July 1, 2026, to compensate customers for small-value digital banking frauds up to Rs 50,000. Eligible individuals may receive 85% of the net loss or Rs 25,000, whichever is lower, once in their lifetime, provided the fraud is reported within five days to both the bank and the National Cyber Crime Helpline. The compensation cost will be shared between the RBI and banks, with banks required to prove customer liability. The scheme aims to enhance customer protection and digital trust amid rising fraud cases.