RBI Digital Fraud Compensation: Up to ₹25,000 From 1 Jan 2027
From 1 January 2027, RBI rules make banks pay back victims of small online frauds: 85% of the loss or ₹25,000, whichever is less, once in a lifetime, for losses up to ₹50,000. You must report on the cyber crime helpline 1930 and to your bank within 5 calendar days.
What changed
When: For electronic banking transactions on or after 1 January 2027. The compensation applies to frauds that happen up to one year from that date.
| Before | From 1 Jan 2027 |
|---|---|
| Compensation for small frauds | |
| No fixed compensation scheme | 85% of net loss or ₹25,000, whichever is less, once in your lifetime |
| Loss limit for compensation | |
| Not applicable | Gross loss up to ₹50,000 |
| Who proves who is at fault | |
| Often the customer | The bank must prove customer liability |
| Time to decide a complaint | |
| As per bank policy | Policy time, but not more than 45 days (60 days for cross-border) |
| SMS alerts | |
| Bank policy | Instant SMS for every transaction above ₹500 |
How much compensation will I get for online fraud?
RBI issued the Third Amendment Directions, 2026 for commercial banks on 24 June 2026 (RBI/2026-27/167). They apply to electronic banking transactions on or after 1 January 2027.
If you are an individual or a sole proprietor and your gross loss is up to ₹50,000, the bank pays you 85% of the net loss or ₹25,000, whichever is less. Net loss means the loss after any money recovered. You can use this only once in your lifetime.
For example, if you lose ₹20,000 and nothing is recovered, you get ₹17,000. If you lose ₹40,000, 85% would be ₹34,000, so you get the ₹25,000 cap.
What must I do to be eligible?
You must report the fraud on the National Cyber Crime Reporting Portal or the helpline 1930, and also to your bank, within five calendar days of the fraud. The bank must also be satisfied that your loss is genuine.
The bank gives you an application form once it finds your complaint genuine. It must pay you within five calendar days of receiving that form.
On a joint account only one holder can claim. That holder cannot claim again later as a single account holder.
When do I get my full money back?
You have zero liability and the bank must reverse the transaction when the fraud happens because of the bank's own fault, whether or not you reported it.
The same applies to a third party breach, such as a fault at a payment app, gateway or telecom provider, if you report it within five calendar days. After five days your liability follows the bank's policy.
If the fraud happened because you were careless, for example you shared an OTP or PIN, ignored a clear scam warning from the bank, or installed a malicious app, you are liable. The ₹25,000 compensation is meant for such small losses.
Who pays the compensation?
Your bank pays you first. It then claims the money back from RBI and the bank that first received the stolen money. For losses below ₹29,412, the 85% is split 65% RBI, 10% your bank and 10% the receiving bank.
For losses from ₹29,412 to ₹50,000, the ₹25,000 is shared as ₹19,118 from RBI and ₹2,941 each from the two banks. You receive the same amount either way.
What else must banks do?
Banks must send an instant SMS for every electronic transaction above ₹500 and an email wherever you have given one. They must give a 24x7 way to report fraud, a link on their website and app, and send you a complaint number at once.
A bank must decide your complaint within its policy time, never more than 45 calendar days (60 for cross-border cases).
Frequently asked questions
What is the RBI digital fraud compensation limit?
85% of the net loss or ₹25,000, whichever is less, for gross losses up to ₹50,000, once in a lifetime.
From when do the new RBI fraud rules apply?
They apply to electronic banking transactions on or after 1 January 2027. The compensation covers frauds in the first year.
How soon must I report an online fraud?
Within five calendar days, on the cyber crime portal or helpline 1930 and to your bank.
Do these rules cover UPI fraud?
They cover electronic banking transactions, which include card and electronic funds transfers. Check with your bank how it applies to your UPI payment.
Online fraud ka paisa wapas kaise milega?
1 January 2027 se 5 din ke andar 1930 aur bank ko report karein. ₹50,000 tak ke loss par 85% ya ₹25,000 (jo kam ho) milega, zindagi mein ek baar.
Short summary in Hinglish
1 January 2027 se RBI ke naye niyam: ₹50,000 tak ke chhote online fraud mein bank 85% loss ya ₹25,000 (jo kam ho) dega, zindagi mein ek baar. Fraud ke 5 din ke andar 1930 aur bank ko report karna zaroori hai.
