The Reserve Bank of India (RBI) unveiled a series of measures on Friday, including steps aimed at enhancing the safety of digital payments and strengthening customer protection, as it concluded the Monetary Policy Committee meeting.

RBI Governor Sanjay Malhotra announced that the central bank will issue three draft guidelines focused on key areas of consumer protection. These will address mis-selling of financial products, recovery of loans and engagement of recovery agents, and limiting customer liability in cases of unauthorised electronic banking transactions.

“For customer protection, we will issue three draft guidelines: one, relating to mis-selling; two, regarding recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in unauthorised electronic banking transactions,” the RBI monetary policy statement said.

In a significant move to support victims of digital fraud, the RBI also proposed introducing a compensation framework that would allow customers to receive up to Rs 25,000 for losses incurred in small-value fraudulent transactions.

Highlighting growing concerns over digital fraud, Governor Malhotra stated that the central bank is taking further steps to enhance the security of electronic payment systems.

“You are all aware that there have been several fraudulent transactions, for which the Reserve Bank has taken several measures. In this regard, we also propose to publish a discussion paper on possible measures to enhance the safety of digital payments,” he said.

The proposed discussion paper will explore additional safeguards, including lagged credits and stronger authentication requirements for specific categories of users, such as senior citizens.

“Such measures may include lagged credits and additional authentication for a specific class of users like senior citizens,” RBI Governor Sanjay Malhotra said.