Lost Rs 50,000 in digital fraud? Soon, you can get 85% amount back if you follow these rules -
3 calculations to explain how this works

Jun 25, 2026

Synopsis
As per the latest RBI guidelines, if you have lodged a complaint for the fraudulent transaction within 5 calendar days, you shall be compensated the lower of 85% of the net loss amount or Rs 25,000. These rules will come into effect from January 2027, and apply in cases of electronic banking transactions undertaken by customers on or after January 1, 2027.

In some relief for digital fraud victims, the Reserve Bank of India has announced that they can be compensated 85% of the net loss amount or Rs 25,000, whichever is lower. This, however, applies to small value fraudulent electronic banking transactions (EBTs) involving a gross loss of up to Rs 50,000.

This means, if you happen to lose a gross amount of up to Rs 50,000 in an online fraud, you will be able to claim compensation. EBTs would include transactions like point of sale (POS) transfers, automated teller machine transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, internet and card payment.

If a fraudulent transaction happens due to negligence or deficiency on the part of the bank, the customer shall be entitled to zero liability and will see a reversal of the transaction, even if they do not report the transaction, the RBI has stated.

Lost Rs 50,000 in digital fraud? Here’s how to claim compensation

Report online fraud on the National Cyber Crime Reporting Portal or National Cyber Crime Helpline (1930) and to the bank within 5 calendar days from its occurrence. When it receives a complaint from the customer, the bank shall take prompt steps to prevent further unauthorised EBTs in the customer’s account.

These rules will come into effect from January 2027, and apply in cases of electronic banking transactions undertaken by customers on or after January 1, 2027.

Lost Rs 50,000 in digital fraud? How much compensation will you get?

As per the latest RBI guidelines, if you have lodged a complaint for the fraudulent transaction within 5 calendar days, you shall be compensated the lower of 85% of the net loss amount or Rs 25,000.

In this case, 85% of 50,000 comes out to be Rs 42,500. So, the victim will get Rs 25,000 as compensation.

However, it must be noted that the 85% compensation amount is calculated after reducing recoveries made, whether before or after paying the compensation, from the gross loss amount. Of this 85% compensation amount, 65% will be borne by the RBI, 10% by customer’s bank, and the remaining 10% by the beneficiary bank.

Take a look at the illustrations below to understand this better: 

Illustration 1:
 Amount reported lost under the complaint: Rs 40,000
 Recovery made and credited to customer before compensating: Rs 15,000
 Net loss faced by the customer: Rs 40,000-15,000 = Rs 25,000
 Compensation for the customer (85% of net loss): Rs 21,250
 RBI contribution: Rs 16,250
 Contribution of customer’s bank and beneficiary bank: Rs 2,500 each

Illustration 2:
 Amount reported lost: Rs 40,000
 Compensation paid to the customer: Rs 25,000
 RBI contribution: Rs 19,118
 Contribution of customer’s bank and beneficiary bank: Rs 2,941 each

Now, a recovery of the full amount i.e. Rs 40,000 is made after compensation is given to the customer. In such a situation, the customer’s bank should recalculate the compensation payable on the net loss amount and accordingly make additional payment from the recovered amount after factoring in the excess amount of compensation, if any, paid before the recovery.

In this case, the apportionment of recovery shall be as:

 To customer: Rs 15,000
 To RBI: Rs 19,118
 To customer’s bank and beneficiary bank: Rs 2,941 each

Illustration 3:
 Amount reported lost: Rs 40,000
 Compensation paid to the customer: Rs 25,000
 RBI contribution: Rs 19,118
 Contribution of customer’s bank and beneficiary bank: Rs 2,941 each
 Recovery made after compensation is paid: Rs 15,000
 Net loss: Rs 25,000
 Compensation payable (85% of net loss): Rs 21,250
 Additional amount payable: Rs 15,000 + Rs 21,250 – Rs 25,000 = Rs 11,250
 Apportionment of recovery shall be as under:
 To customer: Rs 11,250

As per the RBI guidelines, the compensation will be payable for any losses incurred on fraudulent transactions occurring up to one year from the effective date of these directions i.e. up to January 1, 2028.

[The Economic Times]