Source: ET
Context:
The Reserve Bank of India (RBI) has proposed a new measure to provide quick financial relief to victims of small digital frauds. Under the proposal, customers who lose money in online frauds may receive compensation within five days of reporting the incident.
Key Features of the Proposal
1. Compensation Limit
- Customers losing up to â‚ą50,000 in digital fraud may receive compensation.
- Maximum compensation: â‚ą25,000.
2. Time Limit for Reporting
- The fraud must be reported within 5 days of the incident.
- Once the complaint is received, banks must compensate the victim within five days.
3. One-Time Relief Measure
- The compensation is proposed as a one-time measure.
- Relief may be given even if the fraud occurred due to customer negligence, provided the complaint is filed on time.
Who Will Bear the Compensation Cost?
The financial burden will be shared between banks and the RBI.
- RBI share: around 65%–76% of the compensation
- Banks: remaining portion.
This ensures that banks can quickly reimburse customers without facing the full financial burden.
Objective of the Proposal
The RBI aims to:
- Strengthen trust in digital banking systems
- Provide faster relief to fraud victims
- Encourage timely reporting of cyber frauds
- Improve consumer protection in digital financial services
