The Reserve Bank of India on June 24 deferred the effective date of its Digital Fraud Compensation Framework to January 1, 2027, a six-month extension from the original July 1, 2026 implementation date. The framework applies to electronic banking transactions conducted on or after the new effective date and remains valid for one year.
Customers who suffer digital banking fraud losses of up to Rs 50,000 can claim compensation of 85 percent of the net loss or Rs 25,000, whichever is lower. Claimants must report the fraud within five calendar days to both their bank and the National Cyber Crime Helpline at 1930. Banks have 45 days for domestic cases and 60 days for cross-border cases to process claims.
The multi-party liability sharing mechanism splits compensation costs between the RBI, the customer's bank, and the beneficiary bank. Each customer may claim the benefit only once. The six-month delay gives payment service providers additional time to integrate fraud reporting workflows with the National Cyber Crime Reporting Portal.