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RBI finalises digital banking fraud protection rules; introduces shadow reversal, extends relief to sole proprietors

As reported by Stocks-Markets-Economic Times
Victims of digital payment fraud losing up to Rs 50,000 can now get up to Rs 25,000 compensation from banks, effective January 1, 2027. The RBI will fund 65% of this, with banks contributing the rest. Sole proprietors are now covered, and cross-border frauds are included. Reporting within five days to the cybercrime portal and bank is crucial for eligibility.
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The Reserve Bank of India has finalized new rules to protect victims of digital payment fraud. Starting January 1, 2027, individuals losing up to Rs 50,000 can receive up to Rs 25,000 in compensation, funded 65% by RBI and 35% by banks. These rules now extend coverage to sole…

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