India, June 25 -- The Reserve Bank of India (RBI) has issued directives to limit the liabilities of customers in cases of unauthorised electronic banking transactions or digital fraud.

Customers losing up to Rs.50,000 due to unauthorised digital transactions will now be eligible for compensation of up to 85% of the net loss amount or Rs.25,000, whichever is lesser, once in their lifetime.

The compensation will be funded jointly by the RBI, which will foot 65% of the bill, while the customer's bank will provide 10% of the compensation. The beneficiary bank, in which the fraudsters first receive the funds, will provide 10% compensation. In case of multiple beneficiary banks, compensation will be provided by them in proportion to the funds...