Rs 25k compensation to bank customers hit by digital fraud

Mumbai: Amid growing digital fraud, the Reserve Bank said that banking customers will receive compensation of up to Rs 25,000 for a fraudulent transaction. A customer will be paid the compensation even in cases where the customer ends up sharing the one-time password (OTP) with the fraudsters, Reserve Bank Governor Sanjay Malhotra told reporters here. The money will be paid to the bank customers from the Rs 85,000-crore Depositor Education and Awareness Fund, central bank officials said, making it clear that a customer can get compensation only once in a lifetime and provided that no malafide intent is found. Even though their overall value is low, two-thirds of the digital frauds are under Rs 50,000 in amount, the RBI brass said, stressing that a bulk of the fraud-hit people stand to benefit from the facility. “As long as they are defrauded, whether on their own accord or anyone’s accord, no questions asked, Rs 25,000 will be paid. We will compensate them as long as it (the transaction) is unintended and they have lost the money,” he said. In cases of high-value fraud, the compensation will be capped at Rs 25,000. A draft of the compensation framework will be issued soon for public consultation, he said.