New Delhi: In a move that brings much-needed relief to bank customers, the Reserve Bank of India (RBI) has announced compensation of up to Rs 25,000 for victims of small-value financial frauds. The decision was shared by RBI Governor Sanjay Malhotra on the concluding day of the Monetary Policy Committee (MPC) meeting. The announcement aims to strengthen customer protection and boost confidence in digital banking, especially at a time when online fraud cases are on the rise.
MPC Keeps Repo Rate Unchanged
The Monetary Policy Committee (MPC) held its 59th meeting from February 4 to 6, 2026, under the leadership of RBI Governor Sanjay Malhotra. After reviewing the country’s macroeconomic and financial situation, the panel unanimously decided to keep the policy repo rate under the Liquidity Adjustment Facility (LAF) unchanged at 5.25 per cent.
Alongside the rate decision, the Reserve Bank of India also focused on customer safety. To strengthen protection against digital fraud, the central bank proposed a new framework that will allow bank customers to receive compensation of up to Rs 25,000 for losses suffered in small-value fraudulent transactions.
Fraud Compensation To Be Offered Only Once Per Customer
The Reserve Bank of India (RBI) has made it clear that the proposed fraud compensation will be a one-time benefit for each customer. This means if someone receives compensation for a small-value fraudulent transaction, they will not be eligible to claim it again in the future.
The central bank explained that the framework is designed to provide immediate relief and support to victims, not to serve as a repeated safety net. While RBI wants to help customers recover from financial loss, it has also stressed the importance of staying alert, being cautious with banking details, and avoiding repeated mistakes. Cases involving negligence or repeated lapses will not qualify for compensation under the proposed system.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
