This was among a series of steps announced by the RBI to enhance customer protection and increase digital payments safety. The draft guidelines will be issued shortly, the governor said in his monetary policy address. The framework will review measures that deal with the liability of a customer in electronic banking frauds, the central bank said in a statement.
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At the post-MPC press conference, the central bank outlined the framework and rules for claiming compensation.
- The compensation benefit is allowed only once in a lifetime, not every year.
- The limit is set to encourage customers to stay alert and avoid repeated mistakes.
- The maximum compensation is capped at ₹25,000.
- The payable amount will be calculated as 85% of the loss or ₹25,000, whichever is lower.
- Example: If the loss is ₹50,000, 85% equals ₹42,500, but the payout will be limited to ₹25,000.
- Example: If the loss is ₹20,000, 85% equals ₹17,000, so the compensation will be ₹17,000.
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The central bank on Friday said it will issue guidelines on misselling by lenders, recovery of loans and the use of agents to recover debts.The regulator will also publish a discussion paper on measures to enhance the safety of digital payments, with the introduction of “lagged credits” and additional authentication for senior citizens.
“There is a felt need to ensure that third party products and services that are being sold at the bank counters are suitable to customer needs and are commensurate with the risk appetite of individual clients,” the central bank said.
