New Delhi, March 29 -- The Reserve Bank of India's (RBI) draft amendment directions released this month are timely and appropriate. These will hopefully persuade banks to prioritize resource deployment for controlling digital fraud overall and not just in payments.

While the Indian economy has benefitted significantly from digital infrastructure, including for payments, the time is right to step up the institutional capacity to keep digital fraud in check. This will enhance adoption of the digital infrastructure by providing a safety net for retail victims.

By proposing a compensation mechanism for victims of digital frauds ranging from phishing to coerced money transfers, the central bank is acknowledging something the numbers have bee...