Forum
RBI’s New Cyber Fraud Compensation Scheme: Get Up to ₹25,000 for Digital Fraud Losses
The Reserve Bank of India (RBI) has introduced a new cyber fraud compensation plan that aims to protect digital banking customers from small-value losses caused by online scams and unauthorised transactions. This initiative is designed to offer a seamless reimbursement process for victims and strengthen trust in India’s rapidly growing digital payments ecosystem.
💡 Key Highlights:
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📌 Compensation of up to ₹25,000 or 85% of the amount lost (whichever is lower) for victims of small-value cyber frauds.
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🧾 Draft guidelines will be released soon for public and stakeholder feedback.
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💼 The scheme will be funded using interest earned from unclaimed bank deposits via the Depositor Education and Awareness Fund.
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🤝 Victims are expected to bear 15% loss as “skin in the game” to discourage negligence.
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🔍 RBI’s internal assessment shows ~65% of fraud cases involve small amounts — making this scheme relevant for many consumers.
📊 Why This Matters:
With digital payment adoption rising and cyber fraud risks increasing across UPI, net banking, and mobile transactions, this compensation plan helps alleviate financial loss for everyday users and boosts confidence in online financial systems.
🗣 Discussion Questions for Forum Members:
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Are you aware of any recent cyber fraud incidents that could qualify for this compensation?
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Do you think ₹25,000 is sufficient for victims of digital fraud? Why or why not?
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How can banks and users work together to prevent cyber frauds more effectively?
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What additions or improvements would you like to see in the final RBI guidelines?
👇 Share your thoughts, personal experiences, and tips on cyber fraud protection below!