💳 RBI Cyber Fraud Rules: Shared Your OTP by Mistake?

Kokila Chokkanathan
With wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital banking becoming the norm, cyber frauds and scams are on the rise. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) has recently clarified rules regarding fraudulent transactions caused by sharing sensitive banking information, such as OTPs, and the compensation users can receive.

🔹 1. What Happens if You Share Your OTP?

  • OTP (One-Time Password) is meant to authenticate transactions.
  • If someone fraudulently uses your OTP to transfer money, it is considered a cyber fraud.
  • Customers often unknowingly share OTPs via phishing links, fake calls, or whatsapp scams.
🔹 2. RBI’s Compensation Rules

The RBI has issued cyber fraud guidelines to protect customers:

Scenario

Compensation

Loss due to phishing, malware, or fraud without customer negligence

Full refund by the bank

Loss due to negligence like sharing OTP, PIN, or net banking credentials

Up to ₹25,000 compensation

Loss above ₹25,000 due to customer error

Bank may assess individually; partial recovery possible

💡 Key point: Even if you accidentally shared your OTP, RBI ensures some level of protection and mandatory compensation up to ₹25,000.

🔹 3. Steps to Take Immediately After a Fraudulent Transaction

Contact your bank immediately and report the transaction.

Block your card or net banking access to prevent further loss.

File a complaint with RBI’s banking Ombudsman if your bank doesn’t resolve the matter.

Maintain proof of OTP sharing, messages, or suspicious links for the claim process.

🔹 4. Precautions to Avoid Cyber Fraud

  • Never share your OTP, PIN, or passwords with anyone.
  • Avoid clicking suspicious links in emails, SMS, or WhatsApp.
  • Use multi-factor authentication wherever possible.
  • Monitor your bank account regularly for unusual transactions.
📝 Conclusion

The RBI has taken steps to protect customers from cyber fraud, even when a mistake like sharing an OTP occurs.

  • Accidental OTP sharing is considered customer negligence, but the bank must compensate up to ₹25,000.
  • Vigilance, quick reporting, and following banking security practices remain crucial to minimizing losses.
 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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