RBI Drafts New Rules – Will Customers Be Safer In Digital Payments?

The RBI has initiated a public consultation process by issuing draft directions on customer liability in digital transactions. This review comes amid rising adoption of digital payments and increasing concerns around fraud, unauthorized access, and consumer protection.
Framework Review

The draft amendment directions propose clearer rules on liability allocation between customers and financial institutions. They aim to minimize customer exposure in cases of unauthorized transactions, while ensuring banks and payment service providers adopt stronger security measures.

Key Highlights

• RBI issues draft amendment directions for digital transaction liability
• Focus on limiting customer liability in fraud or unauthorized cases
• Greater accountability for banks and payment service providers
• Public consultation process initiated before final implementation
• Move aligns with global best practices in digital payments security

Outlook
Analysts believe the revised framework will boost consumer confidence in India’s digital payments ecosystem. By reducing risks for customers and enforcing stricter compliance for service providers, the RBI aims to balance innovation with safety, supporting the country’s vision of a secure and inclusive digital economy.

Sources: Reserve Bank of India notifications