In a significant move to strengthen consumer protection in India’s rapidly expanding digital financial ecosystem, the Reserve Bank of India (RBI) on Friday announced plans to introduce a compensation framework that would reimburse victims of small-value online frauds up to ₹25,000. The proposal, unveiled at the conclusion of the central bank’s February 2026 Monetary Policy Committee (MPC) meeting, aims to bolster public confidence in digital transactions amid rising instances of cyber financial fraud.
Speaking at the policy meet, RBI Governor Sanjay Malhotra outlined the rationale behind the initiative: with digital payments now an integral part of everyday banking, protecting customers fro
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