Mumbai, June 24 -- Banks will need to compensate users of digital payment modes for up to 85% of the transaction value in cases of fraud within 5 days of the scam being identified or confirmed, under new guidelines issued by the Reserve Bank of India (RBI) on Wednesday.

The compensation will be available once in a customer's lifetime, with the RBI bearing a significant portion of the cost.

The central bank had issued draft norms on compensating victims of digital payment fraud in March 2026, following which lenders sought an extension of the five-day customer compensation timeline. However, the RBI declined the request in its final norms.

"A bank shall provide the customer an application form for compensation only after it has examined...