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RBI Fraud Compensation: If you accidentally share your One-Time Password (OTP) and money is deducted from your account, you won't have to bear the entire loss anymore. The Reserve Bank of India (RBI) has made a major announcement amidst the rise in digital fraud. The RBI has stated that customers will be compensated up to ₹25,000 in such cases.

Compensation will be provided 'without too many questions.'
RBI Governor Sanjay Malhotra clarified that this relief will be available even in cases where the customer accidentally shared the OTP with a fraudster. This means that if the transaction was unintentional and the customer had no intention of committing fraud, compensation will be provided 'without too many questions'.

Where will the compensation money come from?
This money will not come from the banks, but from the Depositor Education and Awareness Fund. This fund includes unclaimed deposits that have been lying dormant for more than 10 years.

According to RBI officials, two-thirds of digital fraud cases involve amounts less than ₹50,000, so most victims will be able to benefit from this scheme. However, there are some conditions.

The customer will receive this compensation only once in their lifetime.
There should be no malicious intent involved in the fraud.
The customer will have to bear 15% of the fraud amount themselves, even if the amount is less than ₹25,000.
Even in large fraud cases, the compensation will be limited to a maximum of ₹25,000.

Customers need a safety net in the era of digital fraud.
Deputy Governor Swaminathan J. said that the objective is to protect those who unknowingly become victims, so that the financial burden does not become too heavy. The RBI has also indicated that further security measures will be introduced, such as a deliberate slight delay in crediting digital transactions and additional authentication for senior citizens.

The draft of this compensation framework will be released soon for public consultation. This means that customers are now going to get a safety net in the era of digital fraud.

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