By Admin 
RBI New Customer Protections: The scope of digital transactions is increasing rapidly across the country and the government and regulatory bodies are emphasizing on promoting cashless economy. In such a situation, cyber fraud has emerged as a serious challenge. It has often been seen that people become victims of online fraud and they neither get timely justice nor are compensated for their losses.
Keeping this problem in mind, RBI has now taken concrete steps in this direction. The Central Bank is preparing to bring such a framework under which customers who are victims of digital fraud will be able to get compensation. This will not only provide financial relief to the victims, but will also strengthen trust in the digital payment system. This step of RBI is being considered an important initiative towards creating a secure and reliable digital ecosystem.
RBI Governor Sanjay Malhotra on Friday announced that a new framework will be introduced to compensate customers up to Rs 25,000 for losses incurred in small fraudulent digital transactions. Announcing the last monetary policy of the current financial year, he said that RBI will also issue a draft to strengthen the security of digital payments, in which arrangements like delayed credit and additional authentication measures for special category of users like senior citizens will be considered. Delayed credit means intentionally crediting the amount received from some digital transactions to the recipient’s account with a slight delay, so as to reduce the possibility of fraud.
compensation for digital fraud
Governor Sanjay Malhotra said that RBI will issue draft of three new guidelines to protect the interests of customers. The first of these will be related to mis-selling of financial products and services, the second will be related to limiting the liability of customers in unauthorized electronic banking transactions. Also, the third part will be related to the appointment of debt collection and recovery agents and their methods.
He said that the proposed framework for compensation of losses in low value transactions will also be a part of these revised instructions. It is noteworthy that the existing instructions related to zero or limited liability of customers in unauthorized electronic transactions were issued in the year 2017, which have now been reviewed in view of the increasing use of technology.
2017 framework review
Malhotra said mis-selling of financial products and services causes serious losses to customers as well as financial institutions, hence it is important to ensure that third-party products sold over the bank counter are in line with the needs of customers and their risk appetite. For this purpose, draft of comprehensive instructions related to advertising, marketing and sales will also be released soon for public consultation. Apart from this, it has also been decided to review and make the different rules related to loan recovery and recovery agents in banks and NBFCs uniform.
Along with this, the RBI Governor announced ‘Mission Saksham’, the objective of which is to build the capacity of urban cooperative banks. He said that primary urban co-operative banks play a vital role in financial inclusion and their further growth depends on strong skills, technical capabilities and operational strength. Under Mission Saksham, a sector-wide capacity building and certification framework will be created, which will be implemented through large-scale training programs and a comprehensive learning platform. About 14 lakh participants associated with various tasks will be included in this and training programs will be organized in local places and regional languages as far as possible.
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