Alerts & Updates 26th Jun 2026
The RBI has carried out amendment in it direction on Customer Protection in EBT vide its circular dated June 24, 2026. These directions which build upon RBI’s earlier instructions on “๐๐๐๐๐ผ๐บ๐ฒ๐ฟย ๐ฃ๐ฟ๐ผ๐๐ฒ๐ฐ๐๐ถ๐ผ๐ปย โย ๐๐ถ๐บ๐ถ๐๐ถ๐ป๐ดย ๐๐ถ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ย ๐ผ๐ณย ๐๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ย ๐ถ๐ปย ๐จ๐ป๐ฎ๐๐๐ต๐ผ๐ฟ๐ถ๐๐ฒ๐ฑย ๐๐น๐ฒ๐ฐ๐๐ฟ๐ผ๐ป๐ถ๐ฐย ๐๐ฎ๐ป๐ธ๐ถ๐ป๐ดย ๐ง๐ฟ๐ฎ๐ป๐๐ฎ๐ฐ๐๐ถ๐ผ๐ป๐” dated July 6, 2017, which were subsequently consolidated under theย ๐ฅ๐ฒ๐๐ฒ๐ฟ๐๐ฒย ๐๐ฎ๐ป๐ธย ๐ผ๐ณย ๐๐ป๐ฑ๐ถ๐ฎย (๐๐ผ๐บ๐บ๐ฒ๐ฟ๐ฐ๐ถ๐ฎ๐นย ๐๐ฎ๐ป๐ธ๐ย โย ๐ฅ๐ฒ๐๐ฝ๐ผ๐ป๐๐ถ๐ฏ๐น๐ฒย ๐๐๐๐ถ๐ป๐ฒ๐๐ย ๐๐ผ๐ป๐ฑ๐๐ฐ๐)ย ๐๐ถ๐ฟ๐ฒ๐ฐ๐๐ถ๐ผ๐ป๐,ย ๐ฎ๐ฌ๐ฎ๐ฑ.
The amendments mark an important shift from a regime focused primarily on limiting customer liability in unauthorised transactions to a broader customer protection framework. The Directions introduce the concept of “fraudulent electronic banking transactions”, define bank negligence and customer negligence, place the burden of proving customer liability on banks, provide for zero liability in specified cases and establish a compensation mechanism for victims of small-value digital frauds.
This update covers important aspects of the issue and the key changes introduced by RBI and also covers recent judicial trends on Fraudulent Electronic Banking Transactions.
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