Soon 85% compensation for Rs 50,000 lost in fraud

Published 25 June 2026 · india

Lost Rs 50,000 in digital fraud? Here’s how to claim compensation Lost Rs 50,000 in digital fraud? How much compensation will you get? In some

Lost Rs 50,000 in digital fraud? Here’s how to claim compensation Lost Rs 50,000 in digital fraud? How much compensation will you get? In some relief for digital fraud victims, the Reserve Bank of India has announced that they can be compensated 85% of the net loss amount or Rs 25,000, whichever is lower. This, however, applies to small value fraudulent electronic banking transactions (EBTs) involving a gross loss of up to Rs 50,000.This means, if you happen to lose a gross amount of up to Rs 50,000 in an online fraud, you will be able to claim compensation. EBTs would include transactions like point of sale (POS) transfers, automated teller machine transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, internet and card payment.If a fraudulent transaction happens due to negligence or deficiency on the part of the bank, the customer shall be entitled to zero liability and will see a reversal of the transaction, even if they do not report the transaction, the RBI has stated.Report online fraud on the Cyber Crime Reporting Portal or Cyber Crime Helpline (1930) and to the bank within 5 calendar days from its occurrence.

When it receives a complaint from the customer, the bank shall take prompt steps to prevent further unauthorised EBTs in the customer’s account.These rules will come into effect from January 2027, and apply in cases of electronic banking transactions undertaken by customers on or after January 1, 2027.As per the latest RBI guidelines, if you have lodged a complaint for the fraudulent transaction within 5 calendar days, you shall be compensated the lower of 85% of the net loss amount or Rs 25,000.In this case, 85% of 50,000 comes out to be Rs 42,500. So, the victim will get Rs 25,000 as compensation.However, it must be noted that the 85% compensation amount is calculated after reducing recoveries made, whether before or after paying the compensation, from the gross loss amount. Of this 85% compensation amount, 65%

will be borne by the RBI, 10% by customer’s bank, and the remaining 10% by the beneficiary bank.Take a look at the illustrations below to understand this better:Amount reported lost under the complaint: Rs 40,000Recovery made and credited to customer before compensating: Rs 15,000Net loss faced by the customer: Rs 40,000-15,000 = Rs 25,000Compensation for the customer (85% of net loss): Rs 21,250RBI contribution: Rs 16,250Contribution of customer’s bank and beneficiary bank: Rs 2,500 eachAmount reported lost: Rs 40,000Compensation paid to the customer: Rs 25,000RBI contribution: Rs 19,118Contribution of customer’s bank and beneficiary bank: Rs 2,941 eachNow, a recovery of the full amount i.e. Rs 40,000 is made after compensation is given to the customer. In such a situation, the customer’s bank should recalculate the compensation payable on the net loss amount and accordingly make additional