UPI stocks in focus: Paytm, MobiKwik shares fall up to 3.5%; is this RBI announcement the possible reason?

UPI stocks in focus: Paytm, MobiKwik shares fall up to 3.5%; is this RBI announcement the possible reason?

UPI stocks like Paytm, MobiKwik faced selling pressure and fell up to 3.5% on February 6 after Reserve Bank of India Governor Sanjay Malhotra said RBI will propose a framework to compensate customers up to Rs 25,000 for losses incurred in small-value fraudulent transactions.

This was among a series of steps announced by the RBI to enhance customer protection and increase digital payments safety.

The draft guidelines will be issued shortly, the governor said in his monetary policy address. The framework will review measures that deal with the liability of a customer in electronic banking frauds, the central bank said in a statement.

The unprecedented growth in digital payments over the past decade has been accompanied by "growing sophistication of fraudulent activities targeting innocent customers", the RBI said.

Indian banks reported 13,469 cases of frauds relating to card and internet-based transactions amounting to losses of Rs 520 crore in fiscal year 2024-25 after 29,080 frauds and losses of Rs 1,457 crore in 2023-24, RBI data showed.

"There is a framework which we will be taking out for compensation of small frauds because we have observed while in value, they constitute small proportion, but in numbers 65% have less than Rs 55,000 in terms of amount," said Governor Malhotra at post-monetary policy press conference.

"As long as they are defrauded whether on their own accord -- no questions asked. They will be compensated up to Rs 25,000 or 85 percent -- you'll have the details shortly. we'll compensate them as long as it is unintended and they have lost the money," said Malhotra when asked if compensation will be given even after someone gets defrauded after giving OTP.

Rs 25,000 is the limit, and it will be one time only, there will be some rules. Customers should learn from their mistakes, added Malhotra.

The central bank on Friday said it will issue guidelines on misselling by lenders, recovery of loans and the use of agents to recover debts.

The regulator will also publish a discussion paper on measures to enhance the safety of digital payments, with the introduction of "lagged credits" and additional authentication for senior citizens.

"There is a felt need to ensure that third party products and services that are being sold at the bank counters are suitable to customer needs and are commensurate with the risk appetite of individual clients," the central bank said.