The proposed rules target individual losses up to Rs 50,000 allowing bona fide victims who report fraud within five days to receive up to 85% of their net loss or Rs 25,000, whichever is lower. Under the new sharing protocol, the financial burden of this compensation is distributed between the RBI and the banks involved in the transaction to ensure rapid relief for the customer. It also expands the definition of “unauthorised transactions” to include cases of trickery or coercion, while placing the burden of proof on banks and mandating instant SMS alerts for all transactions over Rs 500. It also Ensures that customers face no financial loss if fraud occurs due to bank negligence or third-party breaches reported within five days. The comments/ feedback from stakeholders is invited.
(Link: Press Release Draft Amendment Directions Dated 06/03/2026)
(Link: Draft- Commercial Banks- Responsible Business Conduct)
(Link: Draft- Small Finance Banks- Responsible Business Conduct)
(Link: Draft- Payments Banks- Responsible Business Conduct)
(Link: Draft- Local Area Banks- Responsible Business Conduct)
(Link: Draft- Regional Rural Banks- Responsible Business Conduct)
(Link: Draft- Urban Coop Banks- Responsible Business Conduct)
(Link: Draft- Rural Coop Banks- Responsible Business Conduct)