Introduction
The Reserve Bank of India (RBI) has introduced a revised framework aimed at improving customer protection against digital banking fraud. Under the new rules, eligible customers who suffer small-value digital frauds may receive compensation of up to ₹25,000, or 85% of the net loss, whichever is lower.
The framework is designed to strengthen trust in India's rapidly expanding digital payment ecosystem while establishing clearer responsibilities for banks in handling fraud complaints.
Background
India has witnessed rapid growth in digital payments through UPI, internet banking, mobile banking, debit cards and other electronic payment systems. Alongside this growth, incidents
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