3 min readMumbaiUpdated: Feb 6, 2026 04:08 PM IST
The Reserve Bank of India (RBI) has proposed introducing a comprehensive framework to compensate bank customers for losses arising from small-value fraudulent transactions, with compensation capped at Rs 25,000 per case. The move is aimed at strengthening consumer protection in an increasingly digital banking ecosystem.
As part of customer-centric measures, the RBI on Friday announced that it will issue three separate draft guidelines for public consultation. The first will address mis-selling of financial products, seeking to ensure greater transparency and accountability on the part of banks and financial institutions.
According to RBI Governor Sanjay Malhotra, the second set of guidelines will focus on loan recovery practices, including the conduct and engagement of recovery agents, to prevent harassment and unfair treatment of borrowers. The third will deal with limiting customer liability in cases of unauthorised electronic banking transactions, providing greater clarity and protection for users affected by fraud, the RBI said.
In addition, the central bank will release a discussion paper outlining possible steps to enhance the safety and security of digital payments. These measures could include mechanisms such as lagged credits—where funds are credited after a brief delay to allow verification—and additional authentication requirements for certain categories of users, including senior citizens, who may be more vulnerable to digital fraud.
Together, these initiatives by the RBI are expected to bolster trust in the financial system and ensure safer, more responsible banking practices.
Major Measures
* To further promote financing to real estate sector, it has proposed to allow banks to lend to REITs with certain prudential safeguards.
*NBFCs having no public funds and customer interface, with asset size not exceeding Rs 1000 crore, are proposed to be exempted from the requirement of registration.
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*The RBI has proposed to dispense with the requirement for certain NBFCs to obtain prior approval to open more than 1000 branches.
* The central bank has proposed to remove the limit of Rs 2.5 lakh crore for investments under the Voluntary Retention Route (VRR).
*As proposed in the Union Budget 2026-27, it has proposed to issue the regulatory framework for derivatives on corporate bond indices and total return swaps on corporate bonds.
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