RBI has proposed a comprehensive regulatory framework for managing risks arising from traditional and AI/ML models used by regulated entities. The draft emphasizes governance, validation, accountability, and lifecycle management to strengthen financial sector resilience.
The RBI has withdrawn non-operative FEMA circulars after reviewing directives issued since June 2000. The ruling helps Authorised Persons and stakeholders rely on the current regulatory framework without outdated references.
RBI has rationalised FEMA reporting by introducing revised return formats, discontinuing several reports, and easing compliance requirements for Authorised Persons, FFMCs, and MTSS entities.
RBI has revised customer protection rules for Rural Co-operative Banks by introducing stronger safeguards against fraudulent electronic banking transactions, including zero-liability provisions, mandatory alerts, and enhanced compensation mechanisms.
The amended Directions provide customers with zero liability where fraud results from bank negligence or timely reported third-party breaches. Urban Co-operative Banks must also ensure prompt complaint resolution, transaction reversal, and improved fraud prevention mechanisms.
RBI has overhauled customer protection rules for Regional Rural Banks by introducing stronger fraud prevention measures, zero-liability provisions, and mandatory compensation mechanisms for eligible victims of electronic banking fraud.
The RBI has amended its Responsible Business Conduct Directions to introduce a detailed framework for handling fraudulent electronic banking transactions in Local Area Banks. The Directions define customer and bank liabilities, mandate fraud reporting systems, and establish compensation and grievance redressal mechanisms.
The amended Directions entitle customers to zero liability where fraud occurs due to bank negligence or timely reported third-party breaches. Payments Banks must also provide prompt transaction reversals, investigate complaints within prescribed timelines, and strengthen fraud prevention systems.
RBI’s 2026 amendment introduces stronger safeguards for Small Finance Bank customers, including zero-liability protection, mandatory fraud alerts, compensation for eligible victims, and stricter fraud reporting obligations.
The RBI has replaced the earlier customer liability framework with comprehensive rules governing fraudulent electronic banking transactions. The revised Directions require stronger fraud prevention systems, customer safeguards, and structured compensation mechanisms.
