RBI released revised framework on March 6, 2026, for unauthorised electronic banking transactions, introducing compensation for small-value fraud cases. Key initiatives include Indian Digital Payment Intelligence Corporation (IDPIC) incorporated October 2025, MuleHunter.AI deployed in 26 banks for identifying mule accounts, and 2,421 financial literacy centres established by March 2025. Framework builds on 2017 customer liability guidelines amid rising digital payment fraud.

The RBI's 2026 framework represents a comprehensive response to the surge in digital payment fraud, addressing both prevention and victim compensation. IDPIC, established as a Section 8 company, centralizes fraud intelligence using AI/ML analytics for real-time monitoring across the banking ecosystem. MuleHunter.AI specifically targets money mule operations – a critical component of cyber fraud where criminals use legitimate accounts to launder stolen funds. The compensation mechanism for small-value frauds acknowledges that recovery costs often exceed fraud amounts, making victims whole without lengthy investigations. This framework evolution from 2017 guidelines reflects the shift from basic liability protection to proactive fraud prevention. The integration of advanced analytics, real-time monitoring, and AI-driven pattern recognition creates a multi-layered defense system. Financial literacy expansion through 2,421 CFL centres and campaigns like 'RBI Kehta Hai' addresses the human factor – often the weakest link in cybersecurity. The coordination between RBI and SEBI (through Saa₹thi app and anti-scam campaigns) shows regulatory convergence in consumer protection. This framework positions India's digital payment infrastructure for secure scalability.