New Delhi, June 25 -- The Reserve Bank of India (RBI) has tightened customer protection norms for digital banking frauds, requiring banks to prove customer negligence in disputed transactions and introducing a compensation mechanism for victims of small-value cyber frauds.

The revised framework, issued through amendments to the RBI's Responsible Business Conduct Directions, will apply to electronic banking transactions undertaken on or after 1 January 2027. It covers internet banking, mobile banking, card transactions and other electronic banking channels.

The move comes amid a sharp rise in digital payment fraud and expands on the RBI's earlier framework on customer liability for unauthorised transactions.

One of the biggest changes i...