RBI's ₹25,000 fraud compensation is not live yet. It starts on 1 January 2027

In June 2026 RBI finalised a framework to compensate customers who lose money to fraudulent electronic banking transactions. Several reports since, including roundups of rules that changed in September, have described it as already in force. It is not. The directions were issued on 24 June 2026 and take effect from 1 January 2027, six months later than the 1 July date first proposed, and they apply to transactions made on or after that date.

Once live, the framework covers individual customers and sole proprietors. Where a fraudulent electronic transaction causes a loss of up to ₹50,000, the customer can receive 85 percent of the net loss or ₹25,000, whichever is lower. It can be claimed only once. The fraud has to be reported within five calendar days, to the bank and to the national cybercrime helpline 1930 or its portal. RBI bears the largest share of each payout, and the customer's bank and the bank that received the money contribute the rest.

The same directions require banks to send more detailed transaction alerts, verify customers' registered mobile numbers and email addresses periodically, and accept fraud reports through more channels, including mobile apps.

Until January, the existing rules on limiting a customer's liability for unauthorised electronic transactions continue to apply, and they reward reporting quickly.