Bhubaneswar, March 25 -- In response to the rapid growth of digital payments and online banking in India, the Reserve Bank of India (RBI) is strengthening its framework to better protect customers from unauthorised electronic transactions and cyber fraud.

The central bank has proposed updated guidelines that introduce enhanced safeguards, a clearer compensation system, and the use of advanced technologies like Artificial Intelligence (AI) to detect and prevent fraud. These revised norms were released for public consultation on March 6, 2026.

One of the key features of the revised framework is a compensation mechanism aimed at providing relief in cases of small-value fraudulent transactions. This move is designed to ensure quicker redres...