- By Chetna Shree
- Fri, 06 Feb 2026 08:34 PM (IST)
- Source:JND
RBI Cyber Fraud Rules: If you accidentally share your one-time password (OTP) and lose money as a result, you may not have to bear the entire loss, as the Reserve Bank of India (RBI) on Friday announced that victims of small-value digital frauds will be compensated up to Rs 25,000.
This comes amid a surge in digital fraud, aiming to provide significant relief to customers while encouraging banks to strengthen their security measures.
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Rs 25,000 Compensation For Small-Value Digital Fraud Losses
Addressing the media after the monetary policy announcement, the RBI Governor Sanjay Malhotra said that the compensation will cover up to 85 per cent of the amount lost or Rs 25,000, whichever is lower. He further stated that customers who fall victim to digital fraud, whether due to their own mistake or someone else’s, will be compensated "without any question".
“… as long as (the customers) are defrauded, whether on their own accord or anyone else’s accord, no questions asked, we will compensate them as long as it is unintended,” he said.
Who Will Fund The Compensation?
According to a Jagran.com report, a major portion of the compensation will be covered by the regulator, while banks will contribute 15 per cent and customers will bear a 15 per cent share of the online fraud loss. A detailed draft for customer compensation will be formulated by the regulator.
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Who Is Eligible For The Compensation?
During the monetary policy meeting, the RBI officials noted that around two-thirds of digital fraud cases involve amounts below Rs 50,000, meaning this new announcement will provide significant relief to most victims. However, compensation for small-value digital frauds will be subject to certain conditions:
- The compensation will be a one-time relief per customer.
- If you are defrauded, whether by your own mistake or someone else’s, you will be eligible for compensation as long as the transaction was unintended.
- Customers will have to bear 15 per cent of the loss.
- In all cases, the maximum compensation will cover up to 85 per cent of the amount lost or Rs 25,000, whichever is lower.