Chennai: The Reserve Bank of India (RBI) will launch a framework whereby banks would compensate the customers up to Rs 25,000 for losses due to fraudulent transactions, said Governor Sanjay Malhotra.
He also said banks will be allowed to lend to REITs with certain prudential safeguards.
Announcing the RBI Monetary Policy Committee’s (MPC) decision to hold the repo rate at 5.25% and the neutral stance Malhotra also said, for customer protection, the RBI will give three draft guidelines: one, relating to mis-selling; two, regarding recovery of loans and engagement of recovery agents; and three, on limiting liability of customers in un-authorised electronic banking transactions.
“It is also proposed to introduce a framework to compensate customers up to an amount of ₹25000/- for loss incurred in small-value fraudulent transactions. We will also 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 said.
According to him, the central bank will issue draft guidelines related to the Lead Bank Scheme (LBS). Kisan Credit Card Scheme and the Business Correspondent Model relating to financial inclusion and credit flow. Malhotra also said a unified reporting portal will also be launched by RBI for better management of LBS data.
“The limit of Rs.10 lakh for collateral-free loans to MSMEs is proposed to be increased to Rs.20 lakh. To further promote financing to real estate sector, it is proposed to allow banks to lend to REITs with certain prudential safeguards,” Malhotra said.
