RBI orders provisional refunds for credit card fraud from 2027
Business
The Reserve Bank of India (RBI) is stepping up to protect your money from credit card scams.
From January 1, 2027, if you spot a shady transaction and report it within five days, your bank must give you a provisional refund for the disputed amount, so you're not left hanging.
If you act fast, you won't be held responsible for losses caused by third-party breaches.
Banks must alert, track and compensate
Banks will have to send instant SMS alerts for any electronic transaction above ₹500 and keep track of when you respond.
For smaller frauds (up to ₹50,000), victims can claim either 85% compensation or ₹25,000, whichever is less.
Plus, banks are on the hook for any unauthorized transactions after you've reported them, making them more accountable than ever.