RBI issued seven Amendment Directions on June 24, 2026 overhauling the 2017 customer-liability framework for electronic banking transactions (EBTs). Victims (individuals and sole proprietors) suffering losses up to ₹50,000 in fraudulent EBTs can now claim compensation of 85% of net loss or ₹25,000, whichever is lower. Banks must provide shadow reversal within 5 calendar days for disputed credit-card frauds, prove customer liability, maintain 24×7 reporting channels, and send instant SMS alerts. Implementation deferred to January 1, 2027 for a one-year pilot. Burden of proof shifts squarely to banks.
Key Details
- Regulator: Reserve Bank of India
- Date: 24 Jun 2026
- Document / Order No.: Not specified in source
- Parties: All Scheduled Commercial Banks, Co-operative Banks, NBFCs offering EBT services, individual and sole-proprietor customers
- Industry Impact: All Scheduled Commercial Banks, Co-operative Banks, and NBFCs offering electronic banking transaction services
- Effective Date: January 1, 2027
- Source Type: Regulatory Direction (Amendment)
Why It Matters
For the first time, RBI shifts the burden of proof squarely onto banks in disputed electronic banking transactions, compelling institutions to demonstrate customer negligence rather than requiring victims to prove innocence. Individual customers and sole proprietors can now claim structured compensation of up to ₹25,000 for small-value digital fraud losses, providing a concrete safety net that did not exist under the 2017 framework. The mandatory 24×7 reporting channels and 5-day shadow reversal requirement for credit-card disputes set enforceable operational standards across the entire banking system.
