Mumbai, June 25 -- The Reserve Bank of India (RBI) has issued Amendment Directions on 'Review of Framework of Limiting Customer Liability in Digital Transactions. This basically offers revised customer protection norms for digital banking transactions, widening the scope of existing rules to cover a broader range of fraudulent electronic transactions and introducing a compensation mechanism for victims of small-value digital frauds.

RBI has expanded the framework beyond unauthorised transactions to include a broader category of "fraudulent electronic banking transactions" (EBTs). The draft Amendment Directions inter alia proposed to enhance the scope of existing instructions on limiting liability of customers in unauthorised electronic b...