Digital
Microsoft appoints Charlie Bell as AI-driven code raises quality concerns
Former security chief to oversee reliability as AI writes up to 30 per cent of code
WASHINGTON: Microsoft has created a new senior role focused on engineering quality and appointed Charlie Bell, its former head of security, to the position, as concerns mount over software reliability in the age of AI-written code.
Bell will serve as engineering quality head and report directly to chief executive Satya Nadella, according to an internal memo published on the company’s blog on February 4. The appointment comes as artificial intelligence takes on a growing share of Microsoft’s software development workload.
Last year, Nadella said AI systems were generating between 20 per cent and 30 per cent of the company’s code. Chief technology officer Kevin Scott has since suggested that AI could be responsible for the majority of code generation by the end of the decade.
The move reflects broader unease across the industry about the quality of AI-generated software. Research has linked AI coding tools to higher levels of code churn, while Microsoft’s own studies have found developers are more likely to overlook bugs when reviewing machine-written code than human-authored work.
The focus on engineering quality also follows a series of reliability issues across Microsoft products. Windows 11 has suffered from several problematic updates in recent months, including security patches that disrupted system booting and shutdown. In response, Microsoft has redeployed engineers from new feature development to stabilisation efforts under an internal initiative known as “swarming”.
Bell joined Microsoft in 2021 after more than 20 years at Amazon and previously led the company’s security organisation. In his new role, he will operate as an individual contributor rather than managing large teams. Nadella said the shift was planned and reflected Bell’s desire to return to hands-on engineering work.
Succeeding Bell, Hayete Gallot has been appointed executive vice president for security. Gallot returns to Microsoft after a stint at Google Cloud and brings more than 15 years of prior experience at the company.
The appointment comes amid mixed results from Microsoft’s wider AI strategy. Adoption of Copilot across Microsoft 365 has remained modest, while the company has faced investor pressure following slower cloud growth and recent share price performance. Microsoft has also scaled back some Copilot integrations in consumer products.
Digital
RBI proposes Rs 25,000 compensation cap for small digital fraud losses
RBI, customer bank and beneficiary bank will share payouts
NATIONAL: The Reserve Bank of India has proposed a new compensation framework for small-value fraudulent electronic banking transactions, requiring the central bank, the customer’s bank and the beneficiary’s bank to share payouts to affected customers.
Under draft rules released on Friday, compensation will be capped at the lower of 85 per cent of the net loss amount or Rs 25,000 in cases where the gross loss from a fraudulent electronic transaction is up to Rs 50,000.
The proposal comes as regulators step up efforts to strengthen customer protection amid a rise in digital banking frauds.
RBI governor Sanjay Malhotra had indicated during last month’s monetary policy announcement that the central bank planned to introduce a compensation framework for small-value digital frauds, allowing affected customers to claim relief once during their lifetime.
According to the draft guidelines, when the loss is below Rs 29,412, compensation of 85 per cent of the loss will be paid. Of this amount, 65 per cent will be borne by the RBI, while the customer’s bank and the beneficiary bank will contribute 10 per cent each.
For losses of Rs 29,412 or more but up to Rs 50,000, the compensation will be capped at Rs 25,000. In such cases, the RBI will contribute Rs 19,118, while the customer’s bank and the beneficiary bank will each contribute Rs 2,941.
If funds are later recovered after compensation has been paid, the customer’s bank must recalculate the payout based on the revised net loss and adjust the recovered amount accordingly.
Customers will be eligible for compensation only if they report the fraudulent transaction within five calendar days of its occurrence.
Complaints must be lodged both with the bank and through the National Cyber Crime reporting portal or the National Cyber Crime helpline. Banks must also confirm that the loss is bona fide under their internal processes.
Once a complaint is received, banks must compensate the customer within five calendar days, the draft rules state.
In joint accounts, only one account holder may submit a compensation claim.
The central bank has also proposed tightening transaction alerts by mandating instant SMS notifications for all electronic banking transactions above Rs 500. For transactions of up to Rs 500, banks may decide whether to send alerts based on internal policies.
Banks will not be allowed to charge customers for SMS messages sent to meet regulatory requirements or those used for promotional, marketing or customer awareness purposes.
The draft framework also calls for stronger oversight by requiring banks to periodically report complaints related to fraudulent electronic transactions to their boards or board-level committees. These reports must detail the number and value of cases across categories including card-present transactions, card-not-present transactions, internet banking, mobile banking and ATM transactions.
The RBI has invited public comments on the draft guidelines until 6 April, 2026. The rules are expected to take effect on 1 July, 2026 once finalised.
Banking officials say the proposed sharing of compensation between the RBI, the customer’s bank and the beneficiary bank is intended to increase vigilance across the digital payments ecosystem.
