No more losing money to UPI fraud! RBI to reimburse up to ₹25,000—find out how and who benefits..

Amidst the growing number of online and UPI fraud cases in the digital payment era, there's some relief for consumers. The Reserve Bank of India has developed a new framework under which victims of cyber fraud can receive compensation of up to ₹25,000. This measure aims to reduce losses from small-volume digital fraud and maintain public trust.

What are the new rules?
According to the new rules, if a person is subjected to digital fraud of up to ₹50,000, they can recover 85% of their loss, up to a maximum of ₹25,000 (whichever is less). This means that if you lose ₹20,000, you can recover up to approximately ₹17,000, while a loss of ₹50,000 will only result in a maximum compensation of ₹25,000. It's worth noting that this benefit comes with certain conditions.

What are the conditions?
However, certain conditions have been imposed to avail of this relief. The most important requirement is timely complaint filing. If you file a complaint with the bank or cyber helpline within five days of the fraud, your chances of receiving compensation increase significantly. Delaying may weaken your claim.

What is the Shadow Reversal Facility?
The RBI has also incorporated a "shadow reversal" feature into this system. This means that the bank can temporarily refund the disputed amount to your account while the investigation is ongoing, providing you with immediate relief. A key feature of this scheme is that even if the customer accidentally shares an OTP or other details, compensation can still be received in some cases, provided the fraud was not intentional.

What is the benefit?

This move by the RBI comes at a time when most digital frauds in the country involve small amounts, but their impact on ordinary people is significant. The new rules will not only provide financial relief to victims but will also strengthen trust in the digital payment system. If you become a victim of UPI or online fraud, there is no need to panic.

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