India, Feb. 6 -- Amid rising cases of digital frauds, the Reserve Bank of India (RBI) has proposed compensating up to Rs.25,000 to customers who lose money to small-value fraudulent transactions, governor Sanjay Malhotra said.

"We will also publish a discussion paper on possible measures to enhance the safety of digital payments. Such measures may include lagged credits and additional authentication for specific classes of users like senior citizens," the governor said after the meeting of the central bank's Monetary Policy Committee (MPC).

In a bid to protect customers from cyber frauds, the RBI also plans to review the framework to limit customer liability in digital transactions.

"The extant instructions on limiting the liability of...