RBI Shields Customers Against Digital Fraud – Up to ₹25,000 Compensation
The Reserve Bank of India (RBI) increases its security efforts to safeguard your digital wallet. Governor Sanjay Malhotra announced that customers affected by small-value digital frauds can now claim up to ₹25,000. The system provides users with protection against potential unauthorized charges that may occur in their accounts.
Key Measures and Draft Guidelines
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Mis-selling Practices: Banks and NBFCs must play fair, no hidden tricks.
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Loan Recovery & Agents: The guidelines establish particular procedures that recovery agents must follow when working with customers.
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Unauthorized Transactions: The system limits customer financial responsibility for digital fraudulent activities.
The RBI will present a discussion document which recommends improved security measures for digital payments, including delayed credit processing and additional security verification for elderly users, to enhance safety and transparency during digital transactions.
The RBI uses these measures to announce that people should maintain their digital skills while handling minor issues because the organization will support them.
RBI Digital Fraud Protection – Key Takeaways
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Compensation for Customers: Users can claim up to ₹25,000 for losses in small-value digital transactions.
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Safeguarding Digital Payments: The measure protects consumers from unauthorized charges and boosts trust in online banking.
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Draft Guidelines to Be Issued:
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Mis-selling Practices: Banks and NBFCs must follow fair practices.
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Loan Recovery & Agents: Clear procedures for recovery agents while dealing with customers.
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Unauthorized Transactions: Customer liability limited for fraudulent electronic transactions.
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Enhanced Security Measures: Discussion paper will recommend features like delayed credit posting and additional authentication for senior citizens.
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Overall Goal: Enable safe, secure, and reliable digital banking while providing RBI-backed support to users.
RBI Expands Credit Access and Boosts Financial Inclusion
The RBI is stepping up efforts to make credit easier to access and strengthen financial inclusion. Key moves include:
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Review of Major Schemes:
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Lead Bank Scheme (LBS): Ensuring better coordination between banks and local districts.
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Kisan Credit Card Scheme: Supporting farmers with easier access to affordable credit.
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Business Correspondent Model: Improving last-mile delivery of banking services.
Draft revised guidelines for these schemes will be released soon.
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Other Initiatives:
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Unified Reporting Portal for LBS Data: Simplifies tracking and management of banking outreach across regions.
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Higher Collateral-Free Loan Limits for MSMEs: From ₹10 lakh to ₹20 lakh, giving small businesses more breathing room.
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Banks Lending to REITs: Real estate investment gets a boost, with prudential safeguards ensuring responsible financing.
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These measures aim to boost credit flow, support small businesses and farmers, and make banking simpler and more inclusive for everyone.
RBI Empowers Urban Cooperative Banks with Higher Loan Limits and Mission-SAKSHAM Training
The RBI is giving Urban Cooperative Banks a serious power-up! The banks now have improved flexibility to assist their customers because the financial limits for unsecured loans and loans to nominal members have been increased. The Tier III and IV UCBs have eliminated all tenor and moratorium restrictions from their housing loans, which allows customers to experience unrestricted loan access with reduced administrative requirements. The RBI is launching Mission-SAKSHAM (Sahakari Bank Kshamta Nirman), which will function as a substantial training program that will provide advanced skills to 1.4 lakh UCB staff members. The UCBs now possess better tools, which work in combination with their trained teams to provide customers with improved service that operates at higher speed and delivers better results.
(With Inputs)
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