The Reserve Bank of India (RBI) has introduced new guidelines, effective January 2027, allowing victims of small value electronic banking frauds up to Rs 50,000 to claim compensation. Victims reporting within 5 days can receive the lower of 85% of net loss or Rs 25,000.
India's digital fraud rate hit 7.1% in 2025, nearly double the global average, driven by fraudsters targeting existing accounts with compromised credentials. Logistics, telecommunications, and insurance sectors are most exposed, prompting regulatory action.
Nearly 2.5 million Indians lost $2.5bn to digital fraud in 2025, a 4,300% rise since 2021. The RBI has proposed measures including a one-hour lag on account-to-account transactions and additional authentication by a trusted person for elderly users. Experts welcome the move but warn the proposals may have limited impact given the sophistication of modern scams.
