Today, we conduct almost every activity on online platforms—whether it involves buying groceries or chatting with a friend. As our lives become increasingly digitized, instances of online fraud are also on the rise. Financial fraud, in particular, is seeing the most significant surge. In response to this trend, the RBI (Reserve Bank of India) issued a draft proposal.

Under this draft framework, if you fall victim to digital fraud, the bank will compensate you for the loss. However, this provision primarily applies to online fraud cases involving relatively small amounts.

Essential Steps to Take

If you wish for the bank to compensate you for your losses, you must report the online fraud as soon as possible. You can file this report by visiting the National Cyber ​​Crime Reporting Portal. Additionally, you should inform your bank about the incident through their customer care service.

To claim compensation under this regulation, you must file a report within five days of the incident occurring.

How ​​Much Will the Bank Compensate?

It is the bank's responsibility to compensate you for your losses within five days. The bank will reimburse 85 percent of the amount lost. Furthermore, you can claim the remaining balance through a reimbursement process facilitated by the RBI.

What is the Compensation Limit?

Under this regulation, the bank provides a maximum compensation of ₹25,000, regardless of whether your actual loss exceeds or falls short of this amount.

How ​​Many Times Can This Be Availed?

According to the information available, you can claim compensation under this regulation only once. If you have already received compensation on one occasion and subsequently fall victim to a similar fraud incident, you will not be eligible to receive funds under this scheme again.

When Will It Come into Effect?

Based on the information received, the RBI issued the draft framework for digital fraud compensation on March 6, 2026. This new framework is expected to come into effect by July 1, 2026.

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