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.

— Filed Thu, 25 Jun, 2026, 12:31 IST · Source Inc42 · Buzz · Updated

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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