RBI Governor Sanjay Malhotra said the framework will include provisions for compensation of up to ₹25,000 for victims of small-value digital frauds.
“Since frauds can still happen despite preventive measures, we have introduced a limited liability framework which will come into effect from January 1, 2027,” Malhotra said in an interview with DD News.
The governor said the RBI’s approach towards fraud management focuses on prevention, early identification of risks and customer awareness. He added that the central bank is working with banks to strengthen supervisory mechanisms and ensure the safety of customers’ money and digital transactions.
“We are increasing awareness, but since frauds can still occur, our supervisory framework is proactive and preventive. We aim to identify risks quickly,” he said.
The RBI has also been running awareness initiatives, including Digital Payment Awareness Week and the “RBI Kehta Hai” campaign, to educate customers about cyber fraud risks. These initiatives use multiple channels, including electronic media, print media and social media, to reach customers, including those in rural areas.
Malhotra highlighted that as digital payments expand, cybersecurity and data privacy remain key focus areas for regulators and banks. He said banks are also being encouraged to adopt technologies such as artificial intelligence (AI) to improve efficiency and customer service while managing associated risks.
The RBI governor’s comments come amid rapid growth in digital payments in India, alongside rising concerns over online scams, phishing attacks and unauthorised transactions. The proposed framework is expected to provide an additional layer of protection for customers while encouraging greater confidence in digital banking services.
First Published: Jul 17, 2026 12:05 PM IST
