A CRITICAL APPRAISAL ON BANKING – TYPES & THE ROLE OF CONSUMER PROTECTION WITHIN THE BANKING SECTOR
By G. Soundarya
The concept of banking isn’t’ new, it’s been tenaciously developing throughout the decades. Generally, a bank is considered to be a financial institution that gives banking and other financial services to its customers. In India the term ‘Banks’ and ‘Banking’ are classified into several groups. Each group operates with its own benefits and limitations.
As technology develops, the revolution within the field of banking has also gradually taken place. As we all know that the concept of banking has been evolving in India even before Independence. In 1786, a bank called The General Bank of India was established and it had been considered to be the primary ever bank to be found out in India. Scheduled and Non- Scheduled are the classification made with reference to banking in India. The Scheduled banks consist of the public sector, private sector banks etc., whereas the Non-Scheduled banks consist of development, local area banks etc.
In order to guard the consumer’s interests, the subsequent two acts are enacted by the Indian legislation.
• Federal Reserve Bank of India Act &
• The Banking Regulation Act
Apart from this, the RBI had also introduced the Banking Ombudsman scheme to guard the consumers. This research paper helps us to know the concept of banking in India. It also focuses on the banking types and the motive of consumer protection within the banking sector. Finally, to understand the acts and regulations in favour of consumer protection.
Keywords: Banking, Customers, RBI act 1934, Banking Regulation Act 1949, Banking Ombudsman.
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