While Paytm shares fell 3.4% to hit the day’s low of Rs 1,170.40, Mobikwik stock plunged 4%, dropping to the session’s low of Rs 218.10.
The proposed move aims to protect customers making UPI or internet based transactions and increase digital payments safety. The draft guidelines will be issued shortly, the Governor said in his monetary policy address. The framework will review measures dealing with customer liability in electronic banking frauds, the central bank said in a statement.
“For customer protection, we will issue three draft guidelines: one, relating to mis-selling; two, regarding recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in unauthorised electronic banking transactions. It is also proposed to introduce a framework to compensate customers up to an amount of Rs 25,000 for loss incurred in small value fraudulent transactions,” Malhotra said in his monetary policy speech.
He said the RBI will publish a discussion paper on possible measures to enhance digital payments safety. These measures could include lagged credits and additional authentication for specific user classes, such as senior citizens.
At the post-MPC press conference, the central bank outlined the framework and rules for claiming compensation.
Also Read | Thinking of pausing your mutual fund SIPs? A 6 month gap may cost you Rs 2 lakh additional lossThe compensation benefit is allowed only once in a lifetime, not every year.
The limit is set to encourage customers to stay alert and avoid repeated mistakes.
The maximum compensation is capped at Rs 25,000.
The payable amount will be calculated as 85% of the loss or Rs 25,000, whichever is lower.
Indian banks reported 13,469 cases of frauds relating to card and internet based transactions amounting to losses of Rs 520 crore in the fiscal year 2024-25, after 29,080 frauds and losses of Rs 1,457 crore in 2023-24, RBI data showed.
“There is a felt need to ensure that third party products and services that are being sold at bank counters are suitable to customer needs and are commensurate with the risk appetite of individual clients,” the central bank said.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)