Legal Framework of Internet Banking in India
Volume IV, Issue I, 2021
Banking System always has an important role to play in the economy of every nation. It is important as it provides for the need for credit for all sections of society. The growth prospective of our nation is based on its well-built banking institution. The banking system as it stands today has become more intricate with different services stemming from reliance on technological changes which has shaped the complete banking system from a manual intensive industry to a highly automated and technologically dependent industry. But this technologically dependent banking continues to present challenges to financial security and personal privacy. Crores of financial data transactions occur online every day and bank cyber crimes take place every day when bank information is compromised by skilled criminal hackers by manipulating a financial institution’s online information system. This cause huge financial loses to the banks and customers. So, one of the major concerns of people transacting through internet banking is the safety related to data of bank account, transactional information, and also the access path of their accounts. And thus accordingly the present paper tries to discuss the major issues in internet banking and the legal framework which tries to overcome these issues. Everything in this assignment is discussed with practical illustrations.
Keywords: Banking, Internet Banking, Issues, RBI, Legal Framework