RBI Says Draft Rules Soon On Mis-selling, Recovery Agents And Fraud Losses

The Reserve Bank of India (RBI) has announced that it will issue three draft guidelines very soon to protect customers and safeguard the financial system of the country. These three drafts to be issued soon will be on: first, mis-selling of policies; second, recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in unauthorised electronic banking transactions.

RBI Government in the policy speech post the three-day MPC February meeting 2026, said that they would publish a discussion paper on possible measures to enhance the safety of digital payments. “Such measures may include lagged credits and additional authentication for specific class of users like senior citizens,” Malhotra added.

The Central bank

also proposed to introduce a framework to compensate customers up to an amount of Rs 25,000 for losses incurred in small-value fraudulent transactions.

Malhotra in a press conference said that no questions being asked for customers to compensate in case of fraud. “For small customers, this is a way of providing some immediate relief,” Malhotra added.

RBI has announced to keep the repo rate unchanged at 5.25 per cent in February MPC meeting 2026, giving the the near-term domestic inflation and growth outlook remaining positive.

Based on a comprehensive review of the domestic macroeconomic conditions and the outlook, the MPC is of the view that the current policy rate is appropriate, RBI governor Malhotra said in the policy speech. “Accordingly, the MPC voted to continue with the existing policy rate. The MPC also agreed to retain the neutral stance. Going forward, the MPC will be guided by the evolving macroeconomic conditions and the outlook based on data from the new series in charting the future course of monetary policy,” he added.