Source: TOI
Why in News?
The Reserve Bank of India (RBI) has proposed a new compensation framework to provide relief to victims of small-value online frauds, with compensation up to ₹25,000.
Key Features of the Proposed Framework
- Maximum compensation:
- Up to ₹25,000 per victim
- Coverage:
- Applicable to small-value cyber frauds (below ₹50,000)
- Such cases constitute around 65% of online fraud incidents by number
- Compensation sharing mechanism (Skin in the game):
- Victim: 15% of transaction value
- Bank: 15% of transaction value
- RBI: 85% of transaction value or ₹25,000 (whichever is lower)
- Funding source:
- RBI’s Depositor Education and Awareness (DEA) Fund, corpus ≈ ₹85,000 crore
