Electronic Banking Service Under Consumer Protection Act – An Overview

Abstract

Modern banks have opened their doors to give competition to the existing banks. This has also provided banking industry with new taste in competition. Information technology allows customers to transact without any fear of being interrupted. Their expectation level is galloping. Demands and priorities are changing every day. In today's world, customers no longer want old banking products. They want instant gratification and they can now do so through their smart phones. Never in the history of banking has the power so firmly been in the hands of customers as it is today. The battle for survival in the competitive market is the most challenging part of any entrepreneur's career. There are many factors that can affect a person's survival. This has led to various banks in India adopting various innovations in their operations. The present paper highlights the recommendations of the Narasimhan committee, recent innovative practices in this sector, relationship of banker and customer relationship and banking customer as a consumer under consumer as according to Consumer Protection Act, 1986. The recommendations of the Narasimham Committee provided the plan of the reforms, especially with regard to banks and other financial institutions. In 1991, India launched a comprehensive financial sector liberalization program. The objective of the program was to liberalize the country's financial industry. This process involved the decontrol of interest rates and various other measures. The financial liberalization was carried out to improve the efficiency and profitability of the financial sector The banking sector is the main source of finance for many households and SMEs in India. It is also the main source of funds for the country's large enterprises. And also provides many other financial services. Several major reforms were introduced in the Indian banking sector to improve its efficiency and performance. These reforms were carried out in order to make it more competent and efficient. The Eighth Five Year Plan was formulated after the country experienced a period of political instability. It was triggered by the failure of the previous Five Year Plan. In 1991, the country suffered a major foreign exchange crisis. It caused the economy to become vulnerable. The country experienced two Annual Plans in 1992 and 1993. The Eighth Five Year Plan included various measures designed to stimulate economic growth and development. These included the privatization of certain sectors and the liberalization of others. During this period, India joined the World Trade Organization. 3 The objective of the Eighth Five Year Plan was–  To modernize the industrial sector through modern technology & help economy grows.  Opening up of the Indian economy to counter the foreign debt burden which was a significant threat for the country