RBI proposes relief for small digital fraud losses
HYDERABAD:Â The Reserve Bank of India plans to provide partial relief to victims who lose small amounts in digital payment fraud. The move comes even in cases where customers share sensitive details such as one time passwords or passwords with fraudsters.
In cybercrime cases, victims often struggle to recover money even if police register a case and trace the accused. The proposed framework aims to offer limited relief to such customers who bear partial responsibility for the loss.
Third-party data breaches enable fraud calls and fake app downloads
The draft policy proposes compensation in frauds triggered by third-party data breaches. Such breaches may occur when bank-related information stored with external service providers is leaked or sold to cybercrime networks.
Fraudsters then contact customers posing as bank officials. They use personal and card details already obtained to gain trust and persuade victims to share OTPs or install malicious applications. Once access is secured, they carry out online transactions using debit or credit cards.
Compensation capped at ₹25,000 or 85 per cent of loss
Under the proposal, victims who lose up to ₹50,000 in digital fraud may be eligible for compensation. They can receive up to 85 per cent of the lost amount or ₹25,000, whichever is lower. Victims must lodge a complaint with the concerned bank or the national cyber helpline within five working days.
The relief will be available only once in a customer’s lifetime. The Reserve Bank of India and the banks involved in the transaction will share the compensation burden.
According to central bank data, cyber fraud incidents linked to card and internet-based transactions have risen sharply after the Covid period due to increased digital payments.
