RBI Caps Digital Fraud Liability At ₹25K, Forces Banks To Refund 85% Of Net Loss
From January 2027, victims of unauthorised e-banking transactions get up to ₹25,000 (85% of net loss), with RBI funding 65% and banks splitting the rest. SMS alerts above ₹500 and 24x7 grievance support become mandatory — reshaping trust rails for UPI's 241.6 Bn FY26 transaction base.
RBI finalised digital fraud compensation rules giving victims up to ₹25,000 (85% of net loss) for unauthorised e-banking transactions, jointly funded by RBI and banks. Mandates SMS alerts above ₹500 and 24x7 complaint support, effective January 2027.
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