Fraud victims to be compensated up to Rs 25k under RBI's new customer protection measures

Reserve Bank Governor Sanjay Malhotra on Friday announced a new framework to compensate customers up to an amount of Rs 25,000 for loss incurred in small-value fraudulent transactions.

Announcing the last bi-monthly policy for the current financial year, Malhotra said, "we will also publish a discussion paper on possible measures to enhance the safety of digital payments. Such measures may include lagged credits and additional authentication for specific class of users like senior citizens."

For customer protection, he said, RBI will issue three draft guidelines: one, relating to mis-selling; two, regarding recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in un-authorised electronic banking transactions.