RBI proposed revised framework for unauthorised electronic banking transactions on March 6, 2026, introducing compensation mechanism for small-value fraud cases. Indian Digital Payment Intelligence Corporation (IDPIC) established as Section 8 company in October 2025 for real-time fraud monitoring using AI/ML. MuleHunter.AI deployed across 26 banks to identify mule accounts. Centre for Financial Literacy operates 2,421 centres nationwide. Framework builds on 2017 customer liability guidelines amid rising digital payment fraud.

This framework represents RBI's comprehensive response to escalating cyber fraud in India's rapidly expanding digital payments ecosystem. The regulatory approach combines technological solutions with customer protection measures and financial education. IDPIC's establishment as a Section 8 company under Companies Act 2013 creates a dedicated institutional mechanism for fraud intelligence using advanced analytics. This mirrors global central bank trends toward specialized fintech supervision units. MuleHunter.AI's deployment across 26 banks demonstrates practical application of regulatory technology (RegTech) for systemic risk mitigation. The compensation mechanism for small-value fraud cases addresses a critical gap in existing customer protection frameworks, potentially reducing litigation costs and improving customer confidence in digital payments. The framework's integration with existing CFL infrastructure and public awareness campaigns like 'RBI Kehta Hai' reflects a holistic approach combining regulatory, technological, and educational interventions. This is significant for India's financial inclusion goals, as fraud concerns often deter rural and semi-urban populations from adopting digital payment methods. The consultation process indicates RBI's collaborative regulatory approach, seeking stakeholder input before implementation.