RBI Caps Digital Fraud Liability At ₹25,000 With Banks On The Hook For 20% From January 2027
RBI's finalised compensation framework reimburses victims of unauthorised digital transactions up to ₹25,000 or 85% of net loss, with RBI funding 65% and banks 20%. SMS alert threshold drops to ₹500 from ₹5,000. Rules take effect January 1, 2027 against a backdrop of 241.62 Bn FY26 UPI transactions and $1.7 Bn in annual cybercrime losses.
RBI finalises digital fraud compensation rules giving victims up to ₹25,000 (85% of net loss) for unauthorised transactions, with banks funding 20% and RBI 65%. Mandates SMS alerts above ₹500 and 24/7 complaint support, effective January 2027.