Legal Aspects of Internet Banking in India
Asst Prof., School of Excellence in Law
Volume II – Issue IV, 2019
Indian banking system can go cashless with the aid of Internet banking. Internet banking is also known as e-banking or online banking or virtual banking. It is an electronic payment system that enables customers of a bank or other financial institutions to conduct a range of financial transactions through the financial institutions websites. There are different types of online financial transactions famously called as core banking such as Nation Electronic Fund Transfer (NEFT),Real time gross settlement (RTGS),Electronic clearing system (ECS),Immediate Payment Service (IMPS),Automated teller machine, Smart cards, Tele banking etc. Through Internet banking we can check our transactions at any time of the day and as many times as want to. The online banking frauds in India have increased tremendously. In India there are no sufficient Internet banking laws but the Reserve bank of India has issued some guidelines at the latest in this regard though it is not sufficient to make the banks follow robust and required cyber security procedures. The paper highlights the new trends in the Internet banking addressing the cyber issues, its advantages and disadvantages with special reference to legal framework that is prevalent in India to protect the customer against the menace of it.
Keywords: Internet Banking, Core banking, Technology, Cyber security, Legal issues