RBI Scheme: Get Compensation up to Rs 25,000 Even If You Make a Mistake

RBI: Victims of cyber fraud are set to receive some assistance from the Reserve Bank of India. Recently, in light of the increase in digital fraud, the Reserve Bank announced that customers can receive compensation of up to Rs 25,000 for fraudulent transactions. Let’s explore who qualifies for this compensation and the process involved.

Who qualifies for compensation?

Victims of cyber fraud will be eligible for compensation of Rs 25,000 in situations where they inadvertently share their one-time password (OTP) with fraudsters. This means that if you mistakenly provided your OTP to a scammer and your bank account was debited, you can take advantage of this scheme.

One-time compensation only

The Reserve Bank Governor has made it clear that victims will only receive compensation once in their lifetime. Therefore, if you fall victim to cyber fraud multiple times, you will not be able to benefit from this scheme again. According to RBI officials, two-thirds of digital fraud cases involve amounts less than Rs 50,000. Most individuals affected by fraud will benefit from this initiative. In this arrangement, the customer will cover 15 percent of the fraudulent amount, while the respective bank will also cover 15 percent.

The remaining 70 percent will be covered by the Reserve Bank of India. However, under no circumstances will the customer receive more than Rs 25,000 in compensation. The RBI plans to use its surplus income to cover the 70 percent loss. The Governor has assured that the central bank has adequate funds for this purpose. However, the framework for implementing this scheme is still under development.

Avoid Cache from Cyber ​​Fraud

To protect yourself from cyber fraud, it is important to never share your OTP, password, PIN, or CVV with anyone. Do not click or scan unknown links or QR codes. Maintain strong and unique passwords and ensure you enable 2FA (two-factor authentication). Caution in UPI and banking: Always check the receiver’s name before making a payment. Perform transactions only through the bank’s app.

If you receive a bank call from an unknown number, disconnect it and call the bank’s official number yourself. In case of cyber fraud, immediately call 1930 (cybercrime helpline). Also, file a complaint on cybercrime.gov.in. Immediately inform the bank and get your account frozen or blocked. In case of cyber fraud, you can also lodge a complaint by visiting your nearest cyber police station.