Lost money in a digital fraud? RBI will provide ₹25,000 compensation. Here are the conditions

The RBI has announced relief for people who have lost money in fraudulent transactions. The central bank has stated that such individuals will be given compensation of up to ₹25,000.

Amidst the rising cases of digital fraud, the Reserve Bank of India (RBI) has announced some relief for the public. The central bank has said that customers will be given compensation of up to ₹25,000 to cover losses incurred due to fraudulent transactions. RBI Governor Sanjay Malhotra said that this compensation will be provided even if the customer has shared the OTP with the fraudsters. A framework for this will be introduced soon. Let's learn more about this in detail.

When will the compensation be given?

The RBI says that a customer will receive compensation only once. This will also be subject to the condition that the transaction was not malicious. That is, if the customer intentionally committed fraud, they will not be entitled to compensation. The compensation money will be given from the ₹85,000 crore Depositor Education and Awareness (DEA) Fund.

Most victims will benefit

The RBI says that in most cases of digital fraud, the amount is less than ₹50,000. Therefore, this announcement by the bank is likely to provide relief to most victims. The RBI Governor said that if someone has lost money in a fraud and it was not done maliciously, they will receive ₹25,000 in compensation. No questions will be asked. It is important to clarify here that the maximum compensation from the bank will be ₹25,000, even if a larger amount was involved in the fraud. A framework for this will be introduced soon.

How to protect yourself from digital fraud?

Do not share sensitive information like OTPs and passwords with any unknown or suspicious person via email, messages, or calls.
Do not provide your banking details on suspicious websites and apps, even if tempted by offers. Regularly change the passwords for your ATM and banking apps.
Do not click on attachments received via message or email from an unknown person.