The Reserve Bank of India (RBI) on June 24, 2026, issued the amendment directions on ‘Review of Framework of Limiting Customer Liability in Digital Transactions’.
It has issued a series of Responsible Business Conduct Amendment Directions, 2026, following stakeholder consultation on the draft directions released on March 06, 2026. The amendments aim to strengthen customer protection against fraudulent electronic banking transactions by expanding the existing framework on customer liability beyond unauthorized transactions to cover a wider range of electronic banking frauds. The revised framework also seeks to reduce the time banks take to process customer complaints, expedite the resolution of fraud-related disputes, and introduce a compensation mechanism for small-value fraudulent electronic transactions.
The amended directions will come into force from January 01, 2027, and are intended to enhance consumer confidence, improve grievance redressal, and promote responsible banking practices across the banking sector.
Amended Directions:
• Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Third Amendment Directions, 2026
• Reserve Bank of India (Small Finance Banks – Responsible Business Conduct) Third Amendment Directions, 2026
• Reserve Bank of India (Payments Banks – Responsible Business Conduct) Second Amendment Directions, 2026
• Reserve Bank of India (Local Area Banks – Responsible Business Conduct) Third Amendment Directions, 2026
• Reserve Bank of India (Regional Rural Banks – Responsible Business Conduct) Third Amendment Directions, 2026
• Reserve Bank of India (Urban Co-operative Banks – Responsible Business Conduct) Third Amendment Directions, 2026
• Reserve Bank of India (Rural Co-operative Banks – Responsible Business Conduct) Third Amendment Directions, 2026.
[Press Release: 2026-2027/533]
