Reserve Bank of India proposes compensation for digital payment fraud victims

The Reserve Bank of India announced on February 6, 2026, that it will propose a framework to compensate customers up to 25,000 rupees for losses resulting from small-value fraudulent digital transactions. This announcement was made during the central bank governor's monetary policy address, highlighting a significant regulatory intervention aimed at improving safety and conduct in the digital payments sector across India IN. The framework sets a specific compensation cap to address the financial impact of fraud on individual users.

In addition to the compensation proposal, the Reserve Bank of India stated it will issue draft guidelines and a discussion paper concerning lender practices and customer liability. These upcoming regulatory documents will specifically address issues such as misselling and the procedures followed by lenders during the loan lifecycle. The guidelines are also expected to cover the conduct of recovery agents and the management of loan recovery, ensuring that these processes are transparent and fair.