Module: | KYC, NPAs, Advances & Investment Valuations
Q213: Scenario: A bona fide bank customer suffers an unauthorized electronic banking fraud resulting in a net loss of exactly ₹20,000. The customer promptly reports the fraud to the National Cyber Crime Portal and his bank within 3 calendar days. Based on the March 2026 Limiting Liability amendments, calculate the total compensation payable to the customer and the exact absolute monetary burden borne by the Reserve Bank of India (RBI), the Customer's Bank, and the Beneficiary Bank, respectively.
What are the correct financial allocations for this specific claim?
✅ Correct Answer: B
The correct answer is B. Under the updated liability framework, the total compensation for small value frauds up to ₹50,000 is strictly capped at 85% of the net loss or ₹25,000, whichever is mathematically less.
85% of the ₹20,000 loss is exactly ₹17,000.
Because this total loss is strictly less than ₹29,412, the guidelines dictate the exact percentage apportionment of the burden based on the net loss amount: the RBI bears 65% (which is ₹13,000), the Customer's Bank bears 10% (which is ₹2,000), and the Beneficiary Bank bears the final 10% (which is ₹2,000). The sum of these individual burdens precisely equals the approved 85% compensation payout of ₹17,000.
85% of the ₹20,000 loss is exactly ₹17,000.
Because this total loss is strictly less than ₹29,412, the guidelines dictate the exact percentage apportionment of the burden based on the net loss amount: the RBI bears 65% (which is ₹13,000), the Customer's Bank bears 10% (which is ₹2,000), and the Beneficiary Bank bears the final 10% (which is ₹2,000). The sum of these individual burdens precisely equals the approved 85% compensation payout of ₹17,000.