By Jessica Frank-Keyes The maximum fraud losses banks are obliged to cover is set to drop to £85,000, down from a planned £415,000, according to a report. Watchdog the Payment Systems Regulator (PSR) is expected to announce the watering down of the reimbursement scheme – set to take effect in October – as reported by the Financial Times (FT). It comes after government ministers and industry bodies had called on the regulator to lower the limit, with both the Treasury and FCA warning against the higher limit. Suggestions banks and fintechs would be forced to fully reimburse victims of authorise…