| Pub. Date | : Jan' 2024 |
|---|---|
| Product Name | : The IUP Journal of Law Review |
| Product Type | : Article |
| Product Code | : IJLR020124 |
| Author Name | : Ishita Yadav and Chaitra Rangappa Beerannavar |
| Availability | : YES |
| Subject/Domain | : Arts & Humanities |
| Download Format | : PDF Format |
| No. of Pages | : 6 |
The adoption of technology and its advancements have brought various fundamental and structural changes to various sectors of the economy, including the banking sector. In India, the move towards e-banking was initiated by the Reserve Bank of India (RBI) by relying upon several recommendations provided by high-level committees formed for promoting the growth of information technology in the field of banking. In the current scenario, digital payment methods have replaced conventional paper-based methods due to their cost-efficiency and expediency. However, it is accompanied by certain challenges, such as poor security measures followed by institutions, which in turn create reputational, operational, or legal risks as they might lead to the disclosure and misuse of sensitive personal information of customers. In order to combat such risks and meet the challenges, the legal framework needs to be strengthened and made more stringent, while specific laws governing electronic payments need to be complied with. The paper examines the relevance of the growing electronic fund transfer systems in India, issues associated with them, existing statutory provisions, and directions issued by the RBI to combat such challenges, and offers suggestions to strengthen the legal framework in order to protect customers as well as participating institutions.
With the advent of technology and its advancements, major changes have been brought to various sectors of the economy. Technology has also assisted companies in taking the banking business to the doorsteps of their customers by creating boundary-less regions, reducing time, and implementing resource restraints. Moreover, with the growth of the Internet and the further introduction of electronic commerce and automated teller machines (ATMs), the banking industry has undergone several functional as well as structural changes. It has not only removed the geographical barriers but also helped in improving the efficiency of banks and reducing their operational costs. In the current scenario, technology has become an inextricable part of the banking process.