The Reserve Bank of India on Friday announced a series of regulatory measures to strengthen customer protection, advance financial inclusion, and a compensation mechanism of Rs 25,000 for victims of small‑value fraudulent electronic transactions.
RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has also announced measures such as enhance the flow of credit and strengthening the Urban Cooperative Banks (UCBs), promote doing ease of business specially for NBFCs and deepen the financial markets.
A key highlight of the policy is RBI's decision to introduce a compensation mechanism in which customers will now be eligible to receive up to Rs 25,000 as compensation for losses arising from unauthorised small‑value transactions. This initiative is intended to boost public confidence in digital payments amid rising fraud cases.
As part of its broader customer‑protection agenda, the RBI also announced three upcoming guidelines aimed at curbing misselling, regulating the conduct of recovery agents, and further strengthening norms governing unauthorised electronic transactions to reduce vulnerabilities in the digital payments ecosystem.
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RBI said that they will publish discussion papers on possible measures to enhance safety of digital payment especially for high‑risk user groups, including senior citizens to support safer adoption of digital payments.
This is the first monetary policy review after Finance Minister Nirmala Sitharaman announced the Budget for financial year 2026-27.
Beyond customer protection the RBI decided to pause on the policy rate front amid geopolitical uncertainties. Malhotra said the MPC has decided to retain short-term lending rate or repo rate at 5.25% with a neutral stance.
The central bank has been tasked by the government to ensure that consumer price index (CPI) based retail inflation remains at 4% with a margin of 2% on either side.
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