Why is in News?
The RBI has issued comprehensive fresh rules to protect retail banking customers from scam transactions involving financial losses due to sophisticated cyberattack and social engineering frauds. These directions significantly amend the landmark 2017 circular on limiting customer liability during unauthorized electronic banking transactions.
Fraudulent Electronic Banking Transactions
- The Reserve Bank of India operates a robust customer protection framework governing Unauthorised and Fraudulent Electronic Banking Transactions (EBTs). This framework has been significantly upgraded under the RBI (Commercial Banks – Responsible Business Conduct) Directions, shifting the core focus from merely limiting liability to actively compensating victims of digital fraud.
- The critical pillars of the EBT guidelines cover liability rules, reporting windows, and the newly established small-value fraud compensation mechanism.