UPI Fraud Victims to Get Compensation, New Rule to be Implemented Soon!

New Delhi: In the era of digitalisation, cyber fraud cases are increasing in India and around the world. Cyber ​​fraudsters are adopting new methods to defraud people. The increasing number of online fraud cases is worrying everyone. The RBI has expressed concern and put forward a new proposal. This proposal aims to provide relief to the public and could be implemented soon.

According to the RBI proposal, losses of up to ₹50,000 in digital banking fraud can be partially compensated. The RBI also clarified the circumstances in which the bank will be held responsible, when the customer will be considered at fault, and where to file a complaint in case of fraud. If these rules are implemented, they could be implemented as early as July 1, 2026.

Know which transactions will be subject to the rules

According to the Reserve Bank of India’s proposal, these rules will apply to all digital transactions conducted through UPI, internet banking, mobile banking, debit cards, credit cards, or ATMs.

Customers can easily access protection if an unauthorised transaction occurs through these channels. These rules will currently apply to commercial banks. Small finance banks, payment banks, and regional rural banks will not be covered.

How much compensation can be received in case of fraud?

If the new rule is implemented, customers can easily receive compensation of up to ₹50,000 in case of digital fraud. According to the proposal, the customer can be compensated up to 85% of the total loss, or a maximum of ₹25,000. However, this facility will be available only once in a lifetime. It is essential that the customer reports the fraud in a timely manner.

Which transactions will be valid?

In the RBI proposal, if a customer enters their OTP, PIN, password, or card details to make a payment, it will be considered an authorised transaction. However, if someone fraudulently obtains customer information or deceives someone into transferring money, such transactions could be considered fraudulent.