The Reserve Bank of India (RBI) has brought great news for the common man while keeping the repo rate unchanged at 5.25%. RBI Governor Sanjay Malhotra announced on February 6 that the central bank is preparing strictly new guidelines to protect bank customers. The biggest relief comes in the form of a proposed compensation plan for victims of digital fraud. Along with this, the RBI is also taking tough steps to stop the harassment faced by borrowers from loan recovery agents.
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What is the new ₹25,000 refund rule for online fraud?
With the rise in digital payments, online scams have also increased. To help victims, the RBI is reviewing its rules to offer financial support. Under the proposed plan, if a customer loses money in a small-value unauthorized transaction, they could receive compensation of up to ₹25,000. This is intended to be a quick relief measure for the common people.
Reports suggest that this benefit might be given as a one-time relief, even in certain cases where a customer might have accidentally shared an OTP without bad intentions. The central bank wants to ensure that small losses do not burden the common man heavily. A detailed discussion paper on this security framework will be released soon.
Strict action against mis-selling and recovery harassment
The RBI is also issuing two other major guidelines to improve banking services. First, it wants to stop banks from pushing unnecessary products like insurance or mutual funds to customers who do not need them. This practice, known as ‘mis-selling’, happens often at bank counters. The new rules will force banks to sell products that actually match the customer’s needs and risk capacity.
Second, the RBI is unifying the rules for loan recovery agents. This means whether you take a loan from a bank or an NBFC, the agents cannot use aggressive or unauthorized methods to recover money. This step is taken to curb the rising complaints of harassment by recovery agents. Additionally, new security layers like voice or fingerprint verification are being planned to protect senior citizens from banking frauds.
