MUMBAI: The Reserve Bank of India has proposed a new framework to compensate bank customers up to Rs 25,000 for losses arising from small-value fraudulent digital transactions, marking a major push to strengthen consumer protection in the fast-growing payments ecosystem.

Announcing the final bi-monthly monetary policy of the financial year, RBI governor Sanjay Malhotra said the central bank would shortly release draft revised instructions for public consultation, including limits on customer liability in unauthorised electronic banking transactions.

The move updates rules last issued in 2017, which set timelines and scenarios for zero or limited customer liability. Malhotra said rapid technological adoption across banking and payments systems had made a comprehensive review necessary.

Alongside the fraud compensation framework, the RBI will issue three separate draft guidelines covering mis-selling of financial products, recovery of loans and conduct of recovery agents, and advertising and sales practices by regulated entities.

Malhotra flagged growing concerns around third-party financial products being sold at bank counters without adequate suitability checks, adding that new instructions would ensure offerings match customer needs and risk appetite.

Advertisement

The central bank will also harmonise existing rules governing loan recovery agents across different regulated entities to improve conduct standards and customer protection.

In a parallel capacity-building push, Malhotra announced the launch of Mission Saksham, a sector-wide training and certification programme for urban co-operative banks. The initiative aims to upskill around 1.40 lakh participants through physical training programmes and a scalable digital learning platform, with content delivered in regional languages wherever possible.
 

New Delhi: India and the European Union have inked a landmark free trade agreement, a deal being hailed as the “mother of all” pacts. It promises duty-free access for over 90 per cent of Indian goods, integrates a market of nearly two billion consumers, and accounts for around a quarter of global GDP.

Commerce secretary Rajesh Agrawal confirmed negotiators had concluded an “ambitious, balanced, forward-looking and mutually beneficial” agreement. Prime Minister Narendra Modi announced the signing on Tuesday during a summit with European Council President Antonio Costa and European Commission President Ursula von der Leyen, who were chief guests at India’s Republic Day celebrations.

The deal is expected to turbocharge India-EU trade, particularly in labour-intensive sectors such as textiles, leather, chemicals, electronics and jewellery—industries that have long struggled to compete with duty-free imports from least developed countries.

The pact also sends a signal beyond Europe. The US, uneasy over India’s oil trade with Russia amid the Ukraine conflict, has taken notice. Analysts say the FTA positions India as a counterweight to protectionist policies that rattled global trade under Donald Trump.

“This is a perfect example of a partnership between two major economies…representing 25 per cent of global GDP and a third of world trade,” Modi said, adding that the deal reinforces shared commitments to democracy and the rule of law.

Advertisement

#WATCH | Prime Minister Narendra Modi says, “This agreement empowers our shared commitment towards democracy and rule of law. This Free Trade Agreement with the European Union will also complement Britain and EFTA’s agreements…I congratulate the people of the nation for this”… pic.twitter.com/30d2fYMxAc

— ANI (@ANI) January 27, 2026

Negotiations, relaunched in June 2022 after nearly a decade-long hiatus, now yield a pact that could redefine global commerce—India and Europe are not just trading partners, they are rewriting the rules of the game.

Advertisement