RBI Proposes ₹25,000 Relief for Small Cyber Fraud Victims
Why in the news
The Reserve Bank of India put forward a plan to reimburse people who lose small sums to online fraud, with a ceiling of ₹25,000 per person.
Key facts
- Cap: up to ₹25,000 per victim.
- Eligible frauds: cyber frauds below ₹50,000.
- Share of cases: such frauds make up around 65% of online fraud incidents by number.
- Funding: RBI Depositor Education and Awareness (DEA) Fund, corpus about ₹85,000 crore.
- Design: a “skin in the game” model where the victim, the bank and the RBI each bear a part.
| Element | Detail |
|---|---|
| Regulator | Reserve Bank of India |
| Maximum payout | ₹25,000 per victim |
| Fraud size covered | Below ₹50,000 |
| Fund used | DEA Fund (about ₹85,000 crore) |
Exam angle
- Fund used for payouts: Depositor Education and Awareness Fund.
- Payout ceiling: ₹25,000.
- Related term: skin in the game (shared liability).