RBI finalises digital banking fraud protection rules; introduces shadow reversal, extends relief to sole proprietors

Victims of digital payment fraud losing up to Rs 50,000 can now get up to Rs 25,000 compensation from banks, effective January 1, 2027. The RBI will fund 65% of this, with banks contributing the rest. Sole proprietors are now covered, and cross-border frauds are included. Reporting within five days to the cybercrime portal and bank is crucial for eligibility.