RBI Digital Fraud Rule: Your ₹0 Liability Explained

RBI now forces banks to compensate victims of small digital frauds faster. Banks must prove YOU were at fault — not the other way around. If your bank drags its feet, you get paid extra.

Here's what happened: RBI has tightened customer protection rules, making banks responsible for proving a fraud victim was negligent before denying compensation.. Victims of small-value digital frauds are now eligible for compensation, with banks required to resolve complaints and reverse transactions faster.. The burden of proof has shifted from the customer to the bank — you no longer have to prove you were careful; the bank must prove you were not..

What you should do: Report any suspicious transaction to your bank immediately — within 3 days ideally — to strengthen your zero-liability claim under RBI norms.. Document everything: screenshot the fraud SMS, note the exact time, and save all complaint acknowledgement numbers from your bank.. Escalate to RBI's Banking Ombudsman (bankingombudsman.rbi.org.in) if your bank does not resolve your fraud complaint within 30 days..

Under RBI's existing limited liability framework, if your bank's system is breached and you reported promptly, your liability is already zero — most victims don't know this and accept the loss silently.