New Delhi, March 8 -- The Reserve Bank of India (RBI) has proposed a framework to partly compensate victims of small-value digital payment fraud. Under the proposal, customers could receive partial reimbursement even if they were partly responsible, though the benefit may be limited to a capped, one-time claim.

Mint explains how the compensation mechanism could work and why the central bank believes a shared liability framework is needed.

RBI has proposed a framework to compensate victims of small-value digital payment fraud, even in cases where the customer may have been partly negligent. The draft guidelines allow partial reimbursement for transactions of up to Rs.50,000, with victims potentially receiving up to 85% of the loss or Rs....