RBI Revises Customer Liability Rules Amid Rising Digital Fraud

The Minister of State for Finance, Pankaj Chaudhary, in the Rajya Sabha, shared important information regarding the RBI’s revised instruction.

He added that the Reserve Bank of India (RBI) has updated its rules on customer liability in cases of unauthorised digital banking transactions. These rules were first issued in 2017 but have now been revised due to the rapid growth of digital payments and technology.

He further stated that, to enhance fraud detection capabilities, a new entity called “the Indian Digital Payment Intelligence Corporation (IDPIC)” was established in October 2025 under the Companies Act. Its main job is to keep an eye on and stop fraud in digital payments using advanced technologies, including Artificial Intelligence (AI), Machine Learning (ML), and big data.

He said apart from this, the RBI has also launched an AI-based system called “MuleHunter.AI” to identify mule accounts used in cyber fraud. This system is already active in 26 banks and is being expanded further. The RBI has advised banks to use advanced tools to detect suspicious transactions.

The government continues to work closely with the RBI and other regulators to tackle cyber fraud. Banks are being encouraged to take strict measures against fraudulent activities.

To raise awareness among citizens, several initiatives are being carried out. The Centre for Financial Literacy project, launched in 2017, has set up a total of 2,421 CFLs across India. RBI also conducts Financial Literacy Week every year and runs the “RBI Kehta Hai” campaign to promote safe banking habits.

The Securities and Exchange Board of India (SEBI) is running its “SEBI vs SCAM” campaign all over media platforms to educate people about fraud. It has also launched the Saathi mobile app to help users learn about safe investing.