FirstScrollFS
HomeDailyMarketsMoneyArchive
FirstScrollFinance, explained simply

Start your morning smart.

Written for anyone, whether you have followed markets for years or never once.

Free. One email each trading morning. Unsubscribe anytime.

Not an email person?Get articles on WhatsApp

Sections

  • Daily
  • Markets
  • Money
  • Archive

Apps

  • iOS · coming soon
  • Android · coming soon

Company

  • Sponsorships
  • Contact
  • Privacy
  • Terms

© 2026 FirstScroll Media Inc.

Explainers and context, not investment advice.

Back to Markets
Markets/By FirstScroll Team/Feb 10, 2026/5 min read

Scammed? RBI Now Has Your Back Up to ₹25,000

Scammed? RBI Now Has Your Back Up to ₹25,000

The Story

Imagine this: You’re at a busy grocery store, rushing to pay. You scan a QR code, enter your PIN, and oops. You just clicked a link in a "confirmation" SMS that looked exactly like it came from your bank. Five minutes later, ₹10,000 is gone.

In the past, this was usually the point where the nightmare began. You’d call the bank, they’d blame the payment platform, the platform would blame you for sharing your PIN, and your money would be lost in a digital black hole.

But as of February 2026, the RBI has decided to step in as the ultimate referee.

The Foundation

For years, digital payments in India have been a "high-speed, no-brakes" affair. We have UPI, instant IMPS, and 24/7 NEFT. But while the speed of transactions went up, the speed of getting your money back after a fraud stayed at a snail's pace.

Sidebar: "Unauthorised Electronic Transactions" are basically any payments made from your account that you didn't actually approve. This includes phishing, SIM swapping, or those sneaky "screen-sharing" scams.

The current rules (which were written way back in 2017) were like trying to fix a Tesla with a hammer they just weren't built for the UPI era.

The Big Reveal

In a major policy shift, the RBI has proposed a formal compensation framework for small-value fraudulent transactions.

Here’s the headline: Banks may soon be required to compensate you up to ₹25,000 for losses arising from digital fraud, subject to certain conditions.

The idea is simple: The RBI acknowledges that digital fraud is no longer just "user error" it’s a systemic risk. By making banks pay, they’re forcing the entire financial system to build better "firewalls" rather than just sending you "don't share your OTP" text messages.

So What?

This is a game-changer for the "vulnerable" users our parents, senior citizens, and people new to the digital economy.

  • The Relief: If you lose a small amount (under ₹25,000), you won’t have to fight a three-month legal battle to get it back. The burden of proof is shifting slightly away from the customer.
  • The "Lagged" Credit: The RBI is also discussing "lagged credits" for high-risk transactions. Think of it like a "cooling-off period" where the money stays in limbo for a few minutes before reaching the scammer, giving you a chance to hit the "undo" button.

The Closing

Don't get us wrong this isn't a license to be careless. If you hand over your password and keys to a stranger, the bank still won't be able to help much. But for the thousands of Indians who fall prey to sophisticated technical glitches and "zero-day" scams, the floor just got a lot less slippery.

As the RBI moves toward a "trust-based" system, the message to banks is loud and clear: If you want us to use your digital pipes, you better make sure they don't leak.

Until then... keep those PINs private and your eyes on the "verified" tick. ;-)

Published in FirstScroll Markets

Share this article

Free daily briefing

Made sense?

We explain one thing like this every trading morning. Markets, business, money, in plain English.

Free. One email each trading morning. Unsubscribe anytime.

Read on your phone? Get each article on WhatsApp instead.

Join on WhatsApp

More in Markets

  • Why Are Bond Yields Rising and Stocks Falling? (2026)

    02 OCT · 5 min read

  • Why do companies use the SEBI settlement mechanism?

    29 SEPT · 5 min read

  • Why Are FPIs Selling Indian Stocks 2026?

    27 SEPT · 5 min read

  • Why did the stock market crash as analysts predicted it would double?

    25 SEPT · 6 min read

  • Why Did Hero Motors IPO Shares Crash 70% Before Listing?

    19 SEPT · 5 min read

All markets→

More in Markets

All markets
Why Are Bond Yields Rising and Stocks Falling? (2026)

Markets

Why Are Bond Yields Rising and Stocks Falling? (2026)

Global bond yields are hitting two-decade highs, creating a vacuum that pulls money from stocks. Here is how rising yields act like gravity for your portfolio.

02 OCT · 5 min read

Why do companies use the SEBI settlement mechanism?

Markets

Why do companies use the SEBI settlement mechanism?

Adani group companies recently paid to settle cases without admitting guilt. Here is how SEBI's legal shortcuts and new formula-based penalties actually work.

29 SEPT · 5 min read

Why Are FPIs Selling Indian Stocks 2026?

Markets

Why Are FPIs Selling Indian Stocks 2026?

Foreign investors have pulled billions from India despite a 10% growth target. Here is how the global AI boom is draining capital from the NSE.

27 SEPT · 5 min read