According to RBI Governor Sanjay Malhotra, this framework will provide compensation of up to ₹25,000 for victims of low-value digital frauds.
“Frauds can still occur despite preventive measures, which is why we are launching a limited liability framework that will take effect from January 1, 2027,” Malhotra stated during an interview with DD News.
The governor explained that the RBI’s strategy on fraud management emphasizes prevention, early detection of risks, and customer education. He noted that the central bank is collaborating with banks to enhance supervisory frameworks and ensure the security of customers’ funds and digital transactions.
“While we are raising awareness, frauds can still happen, and our supervisory framework remains both proactive and preventive. Our goal is to swiftly identify risks,” he added.
The RBI has also initiated awareness programs, including Digital Payment Awareness Week and the “RBI Kehta Hai” campaign, aimed at informing customers about cyber fraud risks. These campaigns leverage various channels, including electronic media, print media, and social media, to reach a broad audience, including individuals in rural regions.
Malhotra emphasized that with the growth of digital payments, cybersecurity and data privacy are critical priorities for both regulators and banks. He mentioned that banks are being encouraged to embrace technologies like artificial intelligence (AI) to enhance efficiency and customer service while managing their inherent risks.
The RBI governor’s remarks come against the backdrop of the swift expansion of digital payments in India, coupled with escalating concerns regarding online scams, phishing attacks, and unauthorized transactions. The proposed framework is anticipated to offer an additional layer of protection for customers while promoting increased confidence in digital banking services.
First Published: Jul 17, 2026 12:05 PM IST
