RBI has unveiled a new framework to compensate victims of digital frauds upto Rs 25,000, effective January 1, 2027. The RBI pathway will enable affected customers to seek compensation for unauthorised digital transactions, provided they report fraud within 5 days of noticing it, subject to conditions and investigation findings. The regulator is trying to bring succour to that victims who feel helpless. RBI is also pushing banks to strengthen their internal risk management systems, releasing guidelines on model risk management, covering AI-ML models and automated decision-making systems
