Online fraud: Money deducted from your bank account? Just do this within 5 days and you'll get your ₹25,000 back..

Digital payments have become an integral part of our lives. Whether paying the vegetable vendor or making a transaction worth lakhs, everything is done with a single click of a smartphone. However, along with this convenience, the risk of online fraud has also increased rapidly. Cyber criminals are siphoning off the hard-earned money of ordinary people. In such a situation, the Reserve Bank of India (RBI) has brought significant relief to the general public. Recently, the central bank presented a draft of a new proposal, under which the loss will be compensated if you are subjected to a small amount of digital fraud. Under this new system, the victim will receive compensation of up to ₹25,000.

What are the compensation rules?

This move by the RBI will directly provide relief to customers who often fall victim to small-scale online fraud. According to the new proposal, if a person is defrauded in an electronic banking transaction and the total loss is up to ₹50,000, they will be considered eligible for compensation.

The customer will receive compensation of 85 percent of the total loss or a maximum of ₹25,000 (whichever is less). However, this facility is available only once in a lifetime. Repeated fraud victims will not be eligible for this scheme.

Actions must be taken within 5 days.

Vigilance is crucial to receive this compensation. You must take immediate action as soon as you realize you have been defrauded. Under the rules, the victim must notify their bank within 5 days of the fraud. They must also file a complaint on the National Cybercrime Reporting Portal or the National Cybercrime Helpline. After receiving the complaint, the bank must pay the compensation amount to the customer within just 5 calendar days.

Understand the Compensation Amount Math

Under this scheme, the financial burden of compensation will be primarily shared between the RBI and the banks. The rules are quite clear.

If the loss is less than ₹29,412, 65 percent will be paid directly by the RBI. The remaining 20 percent (10 percent each) will be borne by the customer's bank and the bank to which the money has gone (the beneficiary bank).
If the loss is between ₹29,412 and ₹50,000: The maximum compensation will be ₹25,000. In this case, the RBI will bear ₹19,118, while both banks will have to pay ₹2,941 each.

Banks will later be able to claim their share from the RBI every quarter.

When will this new rule come into effect?

Reserve Bank Governor Sanjay Malhotra hinted at this change while announcing the monetary policy on February 6. Subsequently, this draft of the customer liability framework related to digital transactions was presented on March 6. Currently, the central bank has sought public comment on this matter, with a deadline of April 6, 2026. If everything goes as planned, this new rule will be applicable to all electronic banking transactions taking place on or after July 1, 2026.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.