MUMBAI: Reserve Bank governor Sanjay Malhotra has said the central bank will pay 70% of the small value money or up to Rs 25,000 lost in fraudulent transactions without any questions being asked to the customer for the first time instances. “A discussion paper will soon be released to ensure stronger digital payment security measures,” Malhotra said. According to the official RBI data, banks reported 13,469 fraud cases related to card and internet-based transactions during fiscal 2025, involving losses of Rs 520 crore, which was massively lower than the 29,080 cases and losses of Rs 1,457 crore in the previous financial year. “Introducing a framework to compensate customers up to an amount of Rs 25,000 for losses incurred in fraudulent transactions,” the governor said, adding this will be done upon asking no questions including whether the affected customer has shared the OTP or not. The governor further said a vast majority to the tune 65% of the digital frauds are worth less than Rs 55,000.

Source: Indian Express February 06, 2026 14:20 UTC