UPSC Prelims Practice Questions — RBI plans ₹25,000 compensation for cyberfraud victims

Q1. As per the RBI's February 2026 proposal on compensation for small-value digital fraud victims, approximately what proportion of reported online frauds (by number of cases) involve amounts below ₹50,000?

  • A. About 35%
  • B. About 50%
  • C. About 65%
  • D. About 80%

Q2. With reference to the RBI's proposed Compensation Framework for Small-Value Cyberfraud Victims (2026), consider the following statements: 1. The maximum compensation is capped at ₹25,000 or 85% of the lost amount, whichever is lower. 2. The scheme is funded from the Depositor Education and Awareness Fund maintained by the RBI. 3. The framework applies only to fraudulent digital transactions of value above ₹50,000. 4. The benefit can be availed only once in a customer's lifetime. Which of the statements given above is/are NOT correct?

  1. The maximum compensation is capped at ₹25,000 or 85% of the lost amount, whichever is lower.
  2. The scheme is funded from the Depositor Education and Awareness Fund maintained by the RBI.
  3. The framework applies only to fraudulent digital transactions of value above ₹50,000.
  4. The benefit can be availed only once in a customer's lifetime.
  • A. 1 and 3
  • B. 3 only
  • C. 2 and 4
  • D. 1, 2 and 4

Q3. The Depositor Education and Awareness (DEA) Fund, from which the RBI proposes to pay compensation to small-value cyberfraud victims, has been established under which one of the following statutory provisions?

  • A. Section 45 of the Reserve Bank of India Act, 1934
  • B. Section 26A of the Banking Regulation Act, 1949
  • C. Section 35A of the Banking Regulation Act, 1949
  • D. Section 24 of the Banking Regulation Act, 1949

Q4. Who maintains and administers the Depositor Education and Awareness Fund that is proposed to bankroll the ₹25,000 cyberfraud compensation framework?

  • A. Ministry of Finance, Government of India
  • B. Indian Banks' Association (IBA)
  • C. Deposit Insurance and Credit Guarantee Corporation (DICGC)
  • D. Reserve Bank of India

Q5. With reference to the RBI's proposed framework (2026) for compensating victims of small-value cyber/digital frauds, consider the following statements: 1. The compensation payable is the lower of ₹25,000 or 85% of the fraud amount. 2. The framework covers fraudulent digital transactions of value up to ₹50,000. 3. Compensation may still be paid even if the customer had shared an OTP, provided the loss was unintended. 4. A single customer can claim the compensation any number of times during their lifetime. Which of the statements given above is/are correct?

  1. The compensation payable is the lower of ₹25,000 or 85% of the fraud amount.
  2. The framework covers fraudulent digital transactions of value up to ₹50,000.
  3. Compensation may still be paid even if the customer had shared an OTP, provided the loss was unintended.
  4. A single customer can claim the compensation any number of times during their lifetime.
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1, 3 and 4
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